The outcome of the presently
accelerating world-wide crisis is not yet decided; but the alternatives can and
must be politically clear. It is certain that the kind of global
monetary-economic system which has evolved in the aftermath of the
crisis-events of 1968, will not survive the presently onrushing calamities.

On Sept. 15-16, 2007, the Schiller
Institute held an amazing two-day conference in Kiedrich, Germany. The subject: “The
Eurasian Land-Bridge is Becoming a Reality.” Three hundred fifty guests
from forty nations gathered amid the most momentous period of change in
globally extended modern civilization since the great 1648 Peace of Westphalia.
As the proceedings of this two-day conference show, we have great and hopeful
options for change.

The agenda featured prominent
speakers from around the world, including Russian scholars and political
leaders; an American consulting engineer; an Italian economist; and an American
civil rights pioneer. The conference concluded with a report on the work of the
LaRouche Youth Movement, with presentations by leading LYM members from around
the world.

The LaRouche Connection began its
coverage of this historic conference (Program 704) with the Schiller
Institute’s founder and chairwoman Helga Zepp-LaRouche’s welcoming
remarks and introduction of the keynote speaker, her husband, Lyndon LaRouche,
who spoke on “This Present World Financial Crisis: Credit vs. Monetarist
Usury.”

This week’s edition features
the following presentations, from Panel IV, which convened on Sept. 16:

·Amelia Boynton Robinson, 96 year
old Vice Chairwoman of the Schiller Institute, and heroine of the U.S. civil
rights movement: “Civil Rights for All People of the Planet”

·Jacque Cheminade, leader of
Solidarité et Progrês, the
LaRouche movement in France,
and thrice a candidate for the French Presidency: “Beyond the Eurasian
Land-Bridge: the Cultural Paradigm of the Millennium to Come”

·Daniel Buchman, a leader of the LaRouche
Youth Movement in Germany:
“Restore a Real Scientific Method”

·Lyndon LaRouche: “Liberate Man from the
Shackles on the Mind: On the Difference Between Man and the Animals.”

January 17 saw three events which clearly define the battle lines
in a showdown over how to respond to the accelerating disintegration of the U.S.
and world economy:

On that afternoon, Federal Reserve Board Chairman Ben Bernanke
appeared before the House of Representatives Budget Committee, and joined the
chorus calling for a “fiscal and monetary stimulus,” to try to
inject some life into an already moribund system.

On that same afternoon, Lyndon
LaRouche addressed an international webcast from Washington, DC,
sponsored by the LaRouche Political Action Committee (L-PAC). When the question
of the myriad of “stimulus packages” was raised, Mr. LaRouche
ridiculed the idea: “Everybody is talking about stimulation, like this is
a sex clinic or something. This is not the problem!” The present crisis
is not a mere financial crisis, nor a depression, but a global breakdown
crisis, which, if not stopped, will radiate out from the Trans-Atlantic
English-speaking community, “to bring every part of the world into a
general breakdown of their respective social systems.” But, by following
the example set by President Franklin Roosevelt, and basing ourselves on the
U.S. Constitution, which is derived, in principle, from the 1648 Treaty of
Westphalia, which placed the “benefit of the other” as the highest
good, the crisis is manageable. Mr. LaRouche outlines the measures which must
be taken now to prevent civilization from disintegrating into chaos.

Two of those measures were the subject of the third Jan. 17 event,
which took place in Copenhagen, Denmark, where Schiller Institute Chairman Tom Gillesberg presented testimony to a parliamentary
committee, urging adoption of Mr. LaRouche’s New Bretton Woods proposal,
and informed committee members of the groundswell of support rising in the U.S.
for Mr. LaRouche’s Homeowners and Bank Protection Act.

The choice before us is clear: Continue the plunge into the worst
human catastrophe since the 14th Century New Dark Age, or adopt
LaRouche’s policies now!

This edition of The LaRouche
Connection features Mr. LaRouche’s opening remarks to the webcast.
The event was moderated by LaRouche’s national spokeswoman, Debra Freeman.

January 17 saw three events which clearly define the battle lines
in a showdown over how to respond to the accelerating disintegration of the U.S. and world
economy:

On that afternoon, Federal Reserve Board Chairman Ben Bernanke
appeared before the House of Representatives Budget Committee, and joined the
chorus calling for a “fiscal and monetary stimulus,” to try to
inject some life into an already moribund system.

On that same afternoon, Lyndon
LaRouche addressed an international webcast from Washington, DC,
sponsored by the LaRouche Political Action Committee (L-PAC). When the question
of the myriad of “stimulus packages” was raised, Mr. LaRouche
ridiculed the idea: “Everybody is talking about stimulation, like this is
a sex clinic or something. This is not the problem!” The present crisis
is not a mere financial crisis, nor a depression, but a global breakdown
crisis, which, if not stopped, will radiate out from the Trans-Atlantic
English-speaking community, “to bring every part of the world into a
general breakdown of their respective social systems.” But, by following
the example set by President Franklin Roosevelt, and basing ourselves on the
U.S. Constitution, which is derived, in principle, from the 1648 Treaty of
Westphalia, which placed the “benefit of the other” as the highest
good, the crisis is manageable. Mr. LaRouche outlines the measures which must
be taken now to prevent civilization from disintegrating into chaos.

Two of those measures were the subject of the third Jan. 17 event,
which took place in Copenhagen, Denmark, where Schiller Institute Chairman Tom Gillesberg presented testimony to a parliamentary
committee, urging adoption of Mr. LaRouche’s New Bretton Woods proposal,
and informed committee members of the groundswell of support rising in the U.S.
for Mr. LaRouche’s Homeowners and Bank Protection Act (HBPA).

This edition of The LaRouche
Connection features first the conclusion of Mr. LaRouche’s opening
remarks to the Webcast, in which he discusses his famous “Triple
Curve,” first presented in 2000, showing the U.S. economy reaching a
critical point of instability; the fact that the human mind is not digital,
that creativity does not exist in any digital system; that the time has come
when the technological and scientific requirements of maintaining humanity are
such that humanity can no longer exist without committing ourselves to the
entirety of the human race—a new, global“Peace of Westphalia.” The remainder of the program is a
portion from the discussion session. The entire event was moderated by LaRouche’s
national spokeswoman, Debra Freeman.

From the WebcastDiscussion
Session:

Homeowners
and Bank Protection Act

From State Rep. Joe Almeda of Rhode
Island (primary sponsor of a resolution calling for
immediate Congressional action on the Homeowners and Bank Protection Act (HBPA)
in the Rhode Island House): Statement calling on all state legislatures across
the country to support the HPBA.

Stimulus
Package or Sex Clinic?

From someone previously associated with the Hamilton Group, and who
is now with the Congressional Budget Office: “Given the nature of this
crisis, there are two potential approaches: One is President Lyndon
Johnson’s, and I believe Hillary Clinton’s misnamed economic
stimulus proposal falls into this one (which I support). The other is the one
President John Kennedy took with his Moon Mission. Can one lead to the other?
Do you think we still have the capability to launch a JFK-style approach?

Infrastructure
Plus Stimulation?

From someone with responsibility for one of the Congressional
committees that deals with economic issues: “While infrastructure
spending is among the initiatives under consideration in Congress, there are
concerns that legislation providing additional spending through infrastructural
development would simply take too long to enter the economy. So, from this standpoint,
do you think that ‘stimulus legislation’ is appropriate, and should
additional investment in infrastructure be included in any stimulus package, or
should it be separate?”

A Plausible
Pitch?

From the Hispanic Caucus on Capitol Hill: “What would you
think about dividing your legislation into two pieces? I think we’ve got
the votes for a moratorium on foreclosures. What if we were to put that first,
and then bring up separately, the bank protection? And, if we were to do it
that way, how much time would we have, after a moratorium on foreclosures, to
deal with the banks?”

After the
HBPA: Reactivate Industry

From someone involved with a national campaign:“You’ve built into the HBPA a
firewall to protect what I assume you mean to be the chartered banks? Why do
you call it a firewall? How would it function? It won’t really stop the
collapse. I don’t understand how you could separate banks’ exposure
to hedge funds and vice versa. Why does Wall Street have such a violent
reaction to your HBPA? From the standpoint of domestic policy, how would you
immediately follow up on the HBPA?

January 17 saw three events which clearly define the battle lines
in a showdown over how to respond to the accelerating disintegration of the U.S.
and world economy:

On that afternoon, Federal Reserve Board Chairman Ben Bernanke
appeared before the House of Representatives Budget Committee, and joined the
chorus calling for a “fiscal and monetary stimulus,” to try to
inject some life into an already moribund system.

On that same afternoon, Lyndon
LaRouche addressed an international webcast from Washington, DC,
sponsored by the LaRouche Political Action Committee (L-PAC). When the question
of the myriad of “stimulus packages” was raised, Mr. LaRouche
ridiculed the idea: “Everybody is talking about stimulation, like this is
a sex clinic or something. This is not the problem!” The present crisis
is not a mere financial crisis, nor a depression, but a global breakdown
crisis, which, if not stopped, will radiate out from the Trans-Atlantic
English-speaking community, “to bring every part of the world into a
general breakdown of their respective social systems.” But, by following
the example set by President Franklin Roosevelt, and basing ourselves on the
U.S. Constitution, which is derived, in principle, from the 1648 Treaty of
Westphalia, which placed the “benefit of the other” as the highest
good, the crisis is manageable. Mr. LaRouche outlines the measures which must
be taken now to prevent civilization from disintegrating into chaos.

Two of those measures were the subject of the third Jan. 17 event,
which took place in Copenhagen, Denmark, where Schiller Institute Chairman Tom Gillesberg presented testimony to a parliamentary
committee, urging adoption of Mr. LaRouche’s New Bretton Woods proposal,
and informed committee members of the groundswell of support rising in the U.S.
for Mr. LaRouche’s Homeowners and Bank Protection Act (HBPA).

The LaRouche
Connection covered this event in three parts. Part I featured the bulk of Mr.
LaRouche’s opening remarks to the webcast. Part II featured his
conclusion and the first five questions from the Discussion session. Part III
features all but the last question, which, unfortunately, had to be omitted for
Public Access time limitations. The entire event was moderated by
LaRouche’s national spokeswoman, Debra
Freeman.

From the WebcastDiscussion
Session:

From a Maryland
state Legislator: “I serve on the committee which is dealing with the
immediate implications of the mortgage crisis, and while I do plan on signing
on as a co-sponsor to the HBPA, I wonder if there isn’t something we can
do on the state level to mitigate the crisis, while we are pressuring Congress
to act.”

Ted Weill (Chairman of
the Mississippi Reform Party): “If the Venezuelan government can set up oil-cracking
plants to make gasoline for their people, we should be able to do the same
thing. What doyou think?”

From John Jeffries, a
machinist in Louisville, KY: “Is the HBPA Constitutional?

From Ruby Nelson (Warrensville Heights, OH City Council): If the HBPA passes
Congress, and I certainly hope that it does, what can we look forward to? Who
will it work? What motivates you to wage this very challenging fight, and how
can we spread it?”

From José Villar, an economist for more than 29 years (in Spain):
“Is it possible for a nation to issue money through a national bank
without interest?”

From a Presidential campaign: “Does Barak Obama know what
he’s doing? Is he a witting player, or just a throw-away?”

From the Freshman Congressional Caucus: “Can we still build
our way out of this crisis, or is it just too late for that? Waiting for a
massive public works program to kick in, just does not seem to be sufficient to
address the problem.”

From Mr. Temba (in Tanzania):
“How were Structural Investment Vehicles formed, and what are their
effects on the global economy?Also, who
owns these things, and what are we to do with them?

John Bosnitch (consultant, and former Executive
Director of the Serbian Unity Congress): “Were you in the situation of Serbia and Russia today, what steps could be
taken to stop the effort to destroy the entire world order through the issue of
independent Kosovo?”

On March 12, Lyndon LaRouche
conducted an international video webcast from Washington, DC,
sponsored by the LaRouche Political Action Committee. Debra Freeman moderated the event. This edition of The LaRouche Connection features the
first hour of Mr. LaRouche’s opening presentation.

LaRouche: “First of all, Felix Rohatyn is guilty of something
tantamount to high treason against the United
States, in the fact that he is supposedly a citizen of
the Unites States, but is working, to my knowledge, with sources which are
intent on destroying the United
States. And therefore, the man is a traitor,
and should be regarded as such by any honest citizen who is not absolutely
stupid.”

Mr. LaRouche immediately takes his audience back to the FDR
Legacy—to March 1933, the day Franklin Roosevelt entered the White House
as President—the same day he began to dictate the outlines of action
which saved the Untied States from the Great Depression, and prepared the
country for war to defeat British-installed fascism. And how Harry Truman
worked for the ideas of British Prime Minister Winston Churchill, to reverse Roosevelt’s intentions for the post-war period.
Since then, the country has been put through shock after shock (McCarthyism;
the assassination of John and Robert Kennedy, and Martin Luther King, Jr.;
9/11) to shape a cowardice in the Baby Boomer generation, which has set us up
to accept the early destruction of our country.

Between 1969 and 1981 we saw the take-down of the 1944 Bretton Woods
fixed-exchange-rate system, wrecking the dollar (Aug. 15, 1971); the
destruction of the physical economy, via massive deregulation of the FDR-era
structure of the economy; a halting of nuclear power; and a change in our
culture.

LaRouche: “The time has come, when we’re now at the end
of the rope. You have a great conspiracy, by the same people, on both sides of
the Atlantic: one destroying the Untied States with the fascist Michael
Bloomberg for President campaign; the other in Europe,
by the introduction of the fascist “Lisbon Treaty” system.”

LaRouche: “This is not necessary. If we go back to our
Constitutional foundations. In order to have a representative form of
government, you must have nations, which are sovereign, which represent the
culture of that people. Not globalization.”

The crisis we face today is a collapse of the World System.
“We are not in a depression; we’re in a general breakdown crisis,
comparable in form to what happened in Europe
in the 14th Century, when the general dark age hit. We are in the
middle of an onrushing dark age!”

Mr. LaRouche urges his listeners to use our nation’s uniquely
Constitutional powers to get things moving again: “Protect the household.
Keep people in their homes and communities. But you can’t save the
homeowners, if you don’t save the banks! You have to save the local
banks—the real ones that take deposits and loan money, and are vehicles
of the Federal government and state governments to conduit funds through them,
for local purposes or state purposes, and thus stimulate the growth of the
economy.In this way you put people back
to work, exactly the way Roosevelt did.”

[For a complete transcript of the webcast, including the discussion
session, see EIR magazine, Vol. 35, No. 12, March 21, 2008. Pp.
4-33. Or, visit www.larouchepub.com, click on
“LaRouche’s Writings,” and search for the March 12 Webcast
listing.]

On March 12, Lyndon LaRouche
conducted an international video webcast from Washington, DC,
sponsored by the LaRouche Political Action Committee. Debra Freeman moderated the event. This edition of The LaRouche Connection features the
conclusion of Mr. LaRouche’s opening presentation, and the first seven
questions to Mr. LaRouche from the Discussion Session.

At the end of Part One of our coverage of this event, Mr. LaRouche
was urging his listeners to use our nation’s uniquely Constitutional
powers to get the U.S.
economy moving again. “Protect the household. Keep people in their homes
and communities. But you can’t save the homeowners, if you don’t
save the banks! You have to save the local banks—the real ones that take
deposits and loan money, and are vehicles of the Federal government and state
governments to conduit funds through them, for local purposes or state
purposes, and thus stimulate the growth of the economy.In this way you put people back to work,
exactly the way Roosevelt did.”

He then proposes setting up a two-level credit system. Loans for
authorized programs could receive Federal created credit, through the local,
State, and Federal chartered banks at 1-2%. Loans for all other purposes would
carry a floating (higher) rate. In this way, the banks are protected, by
putting them through bankruptcy protection, and so are the people, and local
communities, by keeping folks in their homes.

Also required is an economic driver program, involving large
projects, especially nuclear power, which would “break the world free of
petroleum slavery.”

LaRouche: “What we need is a revolt of the patriots: people
who see what patriotism really means. Are you committed to some practical
benefit for your nation, and the world?”

“We must overcome the stupidity which seems to control most
members of the Congress and many citizens who prefer to be ignorant, because
they like desperation better than solutions, in order to accept these three
simple steps:”

2.Establish a
two-tier credit system: 1-2% for government-authorized credit, letting the
interest rate float, to 7-8-9% for other things. No stimulus package.

3.Bring
together an alliance of the United States,
Russia, China, and India, and bring other countries,
and bring other countries into the same alliance, on economic policy, to create
a new international monetary-financial system of fixed exchange rates, ending
the presently hopelessly bankrupt floating exchange-rate system.

“Under these conditions, we can mobilize most of the world to
get the Hell out of this thing and come back to a system where human beings can
decently live again.”

From the Discussion Session:

·From someone associated with writing policy for one of the
Presidential campaigns:“Sen.
Clinton has refined her housing proposal to adopt policies that forcibly reduce
the amounts of money owed by homeowners…. Can this be done without the
establishment of a separate and new Federal institution?”

·From a Democrat member of the Senate, with close historic ties to
the military: “Vice President Dick Cheney has recently called for an
anti-missile defense system. You are repeatedly identified as the intellectual
author of the Strategic Defense Initiative. Has Cheney finally come around to
your point of view? Or, has your advocacy of an SDI changed?”

·From a group at the Hamilton Group: “We are grappling with
the issue of economic vs. fiscal stimulus. Please address the question of a
strong dollar. How would you defend the dollar in this framework?”

·From a member of the Black Congressional Caucus: Do you actually
believe that Barack Obama is a fascist, or is he just being used? Isn’t
it possible that he’s smarter than those who think they’re using
him, and that he’s really using them?”

·From someone holding statewide office in New York: “Can you comment on the
targeting of New York Gov. Eliot Spitzer?”

·From someone associated with a Presidential campaign: “Talk a
bit more about what specifically corporativism is, and how it differs from what
we know as the American System.”

·Composite question (from several sources): “Felix Rohatyn
openly refers to himself as a follower of John Maynard Keynes, but recently
tried to reverse his previous public hostility to Franklin Roosevelt, by saying
he supported the New Deal. There are many ill-informed or lying authorities,
who would insist that FDR and his Bretton Woods system were essentially
Keynesian. Please address this.”

[For a complete transcript of the webcast, including the discussion
session, see EIR magazine, Vol. 35, No. 12, March 21, 2008. Pp.
4-33. Or, visit www.larouchepub.com, click on
“LaRouche’s Writings,” and search for the March 12 Webcast
listing.]

On April 12, Dr. Machivenyika J. Mapuranga,
the Zimbabwean Ambassador the United
States, gave an interview to the LaRouche
Show, the weekly internet radio program. Host Lawrence Freeman was joined by LaRouche Youth Movement member from Zimbabwe, Portia
TarumbwaStrid by
telephone from Berlin.

In a world in the throws of a melt-down of the global financial
system, where City of London financiers are looking for control, looking to
save their system, while instigating destabilizations, potentially leading to
wars, certainly including Africa, host Freeman begins the discussion with a
question to Dr. Mapuranga on the status of the recent
elections for President and Parliament in Zimbabwe.

Ambassador Mapuranga discusses the
elections as a “culmination of the process started in March 2007, when
the heads of state and government of the Southern African Development Community
(SADC) met, and issued a communiqué in which they
requested the President of South Africa, Thabo Mbeki, to play the part of
facilitator—some say even mediator—in talks between the ruling
party, ZANU-PF, and the opposition Movement for
Democratic Change (MDC).”

The talks resulted in Amendment 18 to the Zimbabwean Constitution,
which cut the Presidential term from six to five years, and stipulates a
maximum of two terms. It also created Zimbabwe Electoral Commission (ZEC), with two members each nominated by the opposition
party and by the ruling party.

Amb. Mapuranga, after outlining the course of the recent
elections, held according to ZEC rules, details a lot
of interference by British, who “if you listen to some of the debates that
go on in the House of Lords, you would in fact get convinced that as far as
they’re concerned, Zimbabwe is not yet an independent sovereign
state.”

There follows a discussion of the history of colonial Africa, going
back to 1890, up through 14-year War of Liberation, and the continuing scramble
for the “treasure trove” of raw materials in Zimbabwe.

Portia TarumbwaStrid
intervenes at this point, on President Robert Mugabe’s land reform
policy, and similar policies to redress the disgusting British policies of
forced starvation, wars, and disease: “Any government that tries to go
against globalization, or against the IMF, or against the British
Empire, will get crushed.”

This allowed the Ambassador to elaborate. “The economy we
inherited was an integral part of the Anglo-American economy, and so, very
vulnerable to sanctions, including ‘regime change’”

There is a new determination of African countries, however, to take
their destiny into their own hands. The problem is, they are not getting any
help from the West.

Dr. Mapuranga: “As far as the
British are concerned—and Kenya
was a British colony—it doesn’t really matter if it is RailaOdinga in power, or MwaiKibaki—both of them
are very close allies of the British. In Zimbabwe, it is different. We are
talking of two different paradigms of development. On the one hand, you have a
puppet party, which takes instructions from London,
the MDC, which is funded by London;
and on the other, you have the party of nationalists that spearheaded the
liberation war, and is saying that the indigenous people should also have a say
in the ownership of land, and the mineral resources. They cannot just continue
to be laborers in the mines of the British, or on British farms.”

In answer to Ms. TarumbwaStrid’s plea to help Zimbabwe
build highways, railways, canal systems, doubling its food production,
introducing nuclear irradiation for food preservation, and nuclear power,
especially the fourth generation Pebble Bed reactor being built in South Africa
for power and desalination, Amb. Mapuranga
responded: “I agree entirely. But you have a situation where the Bush
Administration arrogates to itself the power to say who should have access to
nuclear technology, and who should not. That’s a big problem. We have a
Ministry of Water Development, which is concerned with building dams and
singing bore-holes for irrigation purposes.”

On March 12, Lyndon LaRouche
conducted an international video webcast from Washington, DC,
sponsored by the LaRouche Political Action Committee. Debra Freeman moderated. This edition of The LaRouche Connection features the concluding section of the
Discussion Session following Mr. LaRouche’s opening presentation.

From a Zimbabwean living abroad: “I would appreciate your
view on the current situation in Zimbabwe,
and the upcoming elections,[as well as]
Africa as a whole, and how the current
perilous state of the world political and economic system will impact my
already extremely vulnerable continent.”

John Asher:
What’s going to have to be the transition here, out away from this
Eurodollar/petrodollar system, in terms of bringing in the Homeowners and Bank
Protection Act and New Bretton Woods?

From a Democratic staffer on a House Committee: If Hillary Clinton
were elected, would this mean fascism could not be imposed?”

From a director of one of the Presidential campaigns: “You
repeatedly refer to your Youth Movement, and the role they’re playing in
forwarding your political agenda. Yet, those under age 22 or 23 are voting
overwhelmingly for Barak Obama. Please explain.”

AlliPerebikovsky: What is the
historic and cultural background of those nations [which would constitute your
Four Power Agreement, i.e., China,
India, Russia, and the United States]? What is it that
allows these nations to be the best combination to change the current world
system?”

Carlos Cano (president
of the Conseno world organization): “Why do you
persist in restructuring the old-neo-liberal model, when those tendencies keep
us from a new world order, to be able to save the Earth from climatic changes
through responsible consumption?”

From several EIR readers
and others: “Vice-President Dick Cheney is going to 5-6 countries in
Southwest Asia, and many people fear an Iran war, or other preventive war is
being set up. This is especially the case after the resignation of Admiral
Fallon. What is your assessment of this region, and how do you think the U.S. can avoid
war before the Presidential elections?”

Question from a male in the audience:“What is your idea of our future
educational system, based on morality and creativity?”

From a well-known Democratic consultant: “The current race
for the Democratic nomination is being orchestrated in such a way as to cause
bitter divisions among Democrats, and my fear is that those divisions may be
too bitter and too deep to be mended. If this continues, I’m afraid we
face the possibility of a GOP victory. Do you think there is some efficient way
to deal with this problem now?”

Composite question from six sources in Italy:
“The former finance minister of Italy, GiulioTremonti, has recently written a book on the end of
globalization, and the need for a New Bretton Woods. Unfortunately, Tremonti is part of the Berlusconi political movement, in
which many are part of the old P-2 networks. They also support a platform which
is racist, xenophobic, and generally deplorable, How to you think this
contradiction is going to be resolved?”

From someone who was a super-delegate to the 2004 Democratic
Convention in Boston:
“Hoe does evil manifest itself in individuals?”

Release Date:May 5, 2008

Program No. 715

“Firewall: In Defense of the
Nation-State”

Early in 2008, Lyndon LaRouche tasked a small team of young
associates to create a documentary which would present the true story of what
has become widely, but falsely, referred to as “The Sub-prime Mortgage
Crisis,” and what to do about it. On February 22, the Lyndon LaRouche
Political Action Committee (L-PAC) released 10,000 copies of an 84-minute DVD
called “Firewall: In Defense of the Nation-State,” and began
distributing them nationally. In this edition of The LaRouche Connection, we present a 60-minute version of
“Firewall,” edited for Public Access.

On July 25, 2007, before the crisis burst into the news, Lyndon
LaRouche delivered an address in Washington, DC which was webcast internationally on the internet,
stating the close of the post-Franklin Roosevelt
global financial and monetary system:

“Firewall” begins with a clip of Mr. LaRouche from that
webcast: “There is no possibility of a non-collapse of the present
financial system. None. It’s finished now. The present financial system
cannot continue to exist under any circumstances, under any presidency, under
any leadership, or any leadership of nations. Only a fundamental and sudden
change in the world monetary financial system will prevent a general immediate
chain reaction type of collapse. At what speed we don’t know, but it will
go on and it will be unstoppable. And the longer it goes on before coming to an
end, the worse things will get.”

While Mr. LaRouche spoke about the reality of a global collapse,
Presidential candidates, elected officials, and respected economists raced to
reveal various “stimulus packages,” thus perpetuating the hopeless
bailout of an already bankrupt system.

“Firewall” reveals the process by which we have come to
such a point in history, and how we might rise to regain America’s
proper role in the world, rather than shrinking into littleness, watching the
great experiment of our Founding Fathers relegated to the dustbin of history,
as the world descends into a new Dark Age.

In the second half of the 19th Century, a new dynamic
began to express itself in the political landscape of the world. Previously
dominated by a system of empires, typified by the British Empire’s
commitment to thriving off the sheer brute labor power of uneducated, enslaved
populations,the post-colonial U.S.
Republic offered a better vision for the future, typified in the writings of
American System economist and adviser to President Lincoln, Henry C. Carey.

Lincoln triumphed
over the concerted efforts of the British Empire to break the Union
apart, through support of the Confederacy and other means of subversion. The
American System, based upon freeing and fostering the creative capacities of
mankind, thrived upon a culture of scientific advancement, and development of
basic economic infrastructure. The U.S. became the first continental
sovereign nation-state to establish itself on the map, in the entire span of
recorded history.

The international consequences of America’s achievement
precipitated rapidly. Germany,
Japan, and Russia
underwent rapid development. Not giving up easily, the Britain’s Lord Palmerston drew Russia into an alliance against Germany, and manipulated events which led to
World War I, the ultimate aim being the ruin of Germany.

“Firewall” goes through the horrendous terms of the Versailles treaty—a death sentence for Germany. By
1923, with a disintegrated monetary system, Germany
had nowhere to turn, save a political solution to the Weimar madness. Appointed as currency
commissioner, and then president of the Reichsbank, Hjalmar Schacht catalyzed
the further dismantling of Germany
as a nation-state. He brought an end to the hyperinflation, alright, but only
by means of imposing severe hyper-deflation, securing further reparations payments
off the backs of an already starved population. The final remedy to enforced
disintegration came when the London
and Wall Street merged, in slime-mold fashion, to finance the election of Adolf
Hitler. Europe was again pitched into savage
austerity and World War.

Today we are witnessing, once again, the threefold process of
feeding a ballooning financial bubble, using an expanding money supply, looted
from a collapsed physical economy—exactly what was imposed on defeated
Germany—represented as a single, collapse function. A shock front
develops rapidly, until it reaches a critical point of instability, where the
rate of

increase in the monetary aggregates surpasses that of the financial
aggregates. This singularity marks the transition between

two entirely distinct spaces, where the governing processes on the
one side no longer apply on the other.

After World War II, Britain launched a project in the U.S. of the same type of fascism as they had
established throughout Europe in the prior
decade. McCarthyism (better termed “Trumanism,”) turned the U.S.
into a virtual police state, creating the conditions later for the
rock-drugs-sex existentialist counter-culture, which has dominated the Baby
Boomer generation ever since. This time, unlike Germany after WWI, there has been
no need for a military to enforce the destruction of American industry. The
68ers had been imbued with a passionate hatred for the human creative capacity,
a passion which had only to be steered by the manipulation of popular culture. Science-fiction
replaced Science. The cultural willingness to accept the first phase of the
triple curve collapse function had been established.

Throughout the course of the 1970s, a series of operations were run
with the intention of replacing the U.S. physical economy with a
massive parasitical debt bubble. In 1971, a group of financier interests, led
by George Schultz and Felix Rohatyn, made the decision to officially decouple
the dollar from gold, thus ending the Bretton Woods system of international development,
established by President Franklin Roosevelt, ushering in by 1979 what the
Council on Foreign Relations termed “controlled disintegration of the
U.S. economy.”

Among the major firewalls established by Roosevelt
to defend the American people, the Savings and Loan banks – barred from
speculative activities in order to ensure the availability of low interest,
long terms loans for housing and other needs—were opened to predatory
speculation. Remember Mike Milken and “junk bonds?” By the end of
the 1980s, the entire U.S.
economy was in a state of collapse, culminating in “Black Monday,”
in October of 1987.

But an increasing flow of money, looted from the collapsing
physical economy, was required to feed the ballooning bubble. Under
“globalization,” U.S.
trade policy was restructured after the model of the British East India
Company. The cost of goods, which would otherwise be skyrocketing, was lowered,
in essence, to looting the caloric intake of the populations of the
un-developing world. Derivatives markets spread across the globe.

After the blowout of the Y2K bubble, a critical discontinuity was
reached. Banks began appraising housing prices at higher and higher levels, and
new housing development took off. By this time, the electricity grid was
wrecked, the steel industry shut down, and the auto industry packaged up and
shipped out of the country. The average cost of housing began to exceed the
average income. With families unable to afford new homes, sales slowed.

“Sub-prime” lending came to the rescue! By offering
more and more risky loans to more and more people who could ill afford them,
the system managed to keep itself afloat. But not for long. In June 2007, the
largest sub–prime lender, Bear Stearns, found its paper no longer being
accepted at face value. This triggered a chain reaction, and over 80 mortgage
lenders disappeared. The U.S. Treasury and European Central Bank were buffaloed
by the City of London
into pumping hundreds of billions of dollar into the system by the end of the
year, in order to prevent the major banks from going under. Meanwhile, we were
being primed for a fascist intervention.

Today, as the world faces a crisis comparable to that of 1923, the
political solution proffered by some, including would-be President, billionaire
New York City Mayor Michael Bloomberg, and California Governator
Arnold Schwarzenegger, is massive cuts in social services, such as health care
and pensions. Like feudal barons, financial agencies are assuming control over
the nation’s infrastructure, restricting its usage to those rich enough
to pay the rising tolls. This time, the apparatus which would be used is
termed, misleadingly, a “Public-Private
Partnership”—otherwise known as Mussolini-style corporatism.

Once again, as in WeimarGermany, we
have reached a point where the solution must be a political one. But this time,
the American people and the world now face an opportunity which was never given
to WeimarGermany.

Lyndon LaRouche: “Under our Constitution with a President and
with the backing of a Congress which supports him in this, the U.S. can act to
create a firewall in which we protect mortgages and legitimate, chartered
banks. No foreclosures. Keep essential banking functions open. Maintain the
communities and the nation as physically functioning entities. The government
controls the credit. The government is a sovereign. The government is the only
one that is allowed to utter currency. The government must now assert control
over its own money that it creates. No other money is allowed to be generated,
except by treaty agreements with other nations.”

By treaty arrangements with the three other major
powers—China, India, and Russia—it is possible to once again create
a fixed-exchange rate system in the world, putting a lid on inflation, and once
again issue long term credit, in two tiers, the first for productive
activities, such as developing higher and higher technologies, going to a
nuclear economy, maglev trains, and all sorts of new raw materials, at 1-2%;
and the other for everything else, at a floating rate. We can have a really
bright future if we just let this go!

[For a complete script of the program, go to www.larouchepub.com/tv.
Click on Program Summaries for 2008, and scroll down to Program No. 714.]

Release Date:May 15,
2008

“FIREWALL: IN DEFENSE OF THE
NATION-STATE”

RELEASED FEBRUARY 22, 2008 AS A DVD

BY THE

LYNDON LAROUCHE POLITICAL ACTION COMMITTEE

Following is a complete
transcript of the 84-minute version of the documentary.

INTRODUCTION

Narrator: In
mid-2007, the global financial system exploded.

Newspaper headlines and television sets across the country resounded
with reports of what was soon widely referred to as “The Sub-prime
Mortgage Crisis.”The abysmal
losses of Countywide Financial and American Home Mortgage became ‘the
talk of the town’ almost overnight.

The failure was not of pieces of the system, however, but of
the system itself.

This was not an unforeseen “event.”

Several days before the reports of crisis burst into the
news, Economist Lyndon LaRouche delivered an international address, signifying
the close of the post-FDR global financial and monetary system.

[Lyndon LaRouche
(Time:1:01-1:43)

“There is no possibility of a non-collapseof the present financial system.None.It’s finished now.The
present financial system can not continue to exist under any circumstances,
under any presidency, under any leadership or any leadership of nations.Only a fundamental and sudden change in the
world monetary financial system will prevent a general immediate chain reaction
type of collapse. At what speed we don’t know but they will go on and it
will be unstoppable, and the longer it goes on before coming to an end, the
worse things will get.”]

In the ensuing period, though the media frenzy had appeared
to dissipate, the terror in the financial world did not.Rather than following LaRouche’s initiative
to break from the failing system and support his Homeowners and Bank Protection
Act, federal leaders, under pressure from Wall Street, clung to measures which
would only prolong the death-throes of the financial system until the end of
the year, at the expense of the population.

Upon the arrival of the New Year, in the aftermath of
further unprecedented money-pumping measures taken by central banks around the
globe at the behest of City of London
financiers, political solutions began to surface left and right.Presidential candidates, elected officials,
and economists raced to reveal their “stimulus packages,” further
perpetuating the bail out of the already bankrupt system.

On January 17th, six months after his assessment
of the end of the world financial system, LaRouche again spoke out above the
clamor, identifying the full scope and implications of the crisis.

[Lyndon LaRouche
(Time: 3:00-3:38)

“Each day now since Jan. 3rd the crisis has
been expanding in magnitude at an accelerating rate.What you think is the extent of the crisis
today if the measures I propose are not taken, will become much worse by an
order of magnitude. On the next week and the week after that and the week after
that until the whole system grinds into a collapse probably sometime during
this year, and I’m talking about a global collapse not a collapse of just
the trans-Atlantic English speaking community.”]

The following week ended in the last hurrah of the Federal
Reserve: a drastic cut in the interest rates—a clear move of utter
desperation.LaRouche identified this as
the culminating event of a commitment made by the trans-Atlantic
English-speaking world toward a new phase of crisis: a chain reaction of global
hyperinflationary collapse, comparable to that which struck Germany in 1923, terminating in the
fascist regimes of Adolf Hitler and Benito Mussolini.

In this presentation, we shall unfold to the viewer the
process by which we have come to such a point in history, and how we may rise to
the occasion of regaining America’s proper role in the world, rather than
shrinking into littleness and watching as the great experiment of our Founding
Fathers is relegated to the dustbin of history, as the world enters a new Dark
Age.

We urge the viewer to
watch as if his future depended on it, because in a very real sense, it
does.

PRE-WORLD WAR I

Narrator: In the
second half of the nineteenth century, a new dynamic was beginning to express
itself in the political landscape of the world.Previous to this, the world had been dominated by a system of empires,
typified by the British Empire’s
commitment to thriving off the sheer brute labor power of uneducated, enslaved
populations.

In the name of free trade, the British East India Company
enforced an economic policy devised to maintain the dependence of its colonies
upon its control of maritime shipping throughout the world.By flooding foreign markets with cheap goods
they would force other countries to devalue their labor to the point where their
only recourse was either the employment of slave labor or the elimination of
manufacturing altogether.By these means
Britain’s
colonies were to forever remain |vassals| with the sole purpose of supplying
raw materials to the Empire.

[John Hoefle (Time:
6:08-7:06)

“The British Empire
ruled by controlling trade and raw materials. So they would have colonies
around the world, in which they would loot these colonies. These colonies were
never allowed to develop beyond the level at which they needed to develop to
make the looting of them, the looting of their raw materials, efficient. So you
would build railroads from the mine to the coast, but you would never build
railroads across the continent, to tie the continent together as a whole.You would build up certain local
aristocracies, but that’s for the purposes of providing the political
protection for your looting operation.But it’s all about looting and extraction, you don’t want
these things to become nations.Because
if they become nations, then they start looking at these resources as theirs,
instead of yours, and that’s a problem if you are trying to steal
them.”]

In the post-colonial United StatesRepublic,
however, there existed a better vision for the future.American System economist and adviser to
President Abraham Lincoln, Henry C. Carey, drew a stark contrast when he wrote
in 1851:

[Carey
Reader: Two systems are before the world; ….One looks to underworking
the Hindoo, and sinking the rest of the world to his
level; the other to raising the standard of man throughout the world to our
level.One looks to pauperism,
ignorance, depopulation, and barbarism; the other in increasing wealth,
comfort, intelligence,…and civilization.One looks towards universal war; the other towards universal peace.One is the English system; the other we may
be proud to call the American System, for it is the only one ever devised the
tendency of which was that of elevating while equalizing the condition of man
throughout the world.

Such is the true mission of the people
of these United States….
To raise the value of labor throughout the world, we need only raise the value
of our own.]

In 1865, the young nation--the United
States of America--under the leadership of President
Abraham Lincoln, triumphed over the concerted efforts of the British
Empire to break her apart through support of the confederacy and
other means of subversion.The American
System, based upon freeing and fostering the creative capacities of mankind,
thrived upon a culture of scientific advancement and development of basic
economic infrastructure.A vast railway
grid, stretching from ocean to ocean, reinforced the internal sovereignty of
the nation, and secured independence from any external sea-power.In this way, the United States became the first
continental sovereign nation-state to establish itself on the map, in the
entire span of recorded history.

[John Hoefle
(Time: 9:50-10:20)

“Now a nation is an entirely different thing.A nation, if you look at our constitution and
declaration of independence, where it says clearly that the purpose of what
we’re doing is to protect the general welfare of your population.That we’re all in this together. That
everybody gets protected.That we want
to build a nation according to a concept which promotes culture, which promotes
the development of the individuals and the creative potential of the human
mind, because that’s your real asset.” ]

The international consequences of America’s achievement
precipitated rapidly.Just as Carey had
foreseen, the popularity of the American System spread throughout the globe, as
other nations perceived its successful thwarting of the British
Empire.Nations such as Germany, Russia,
and Japan
underwent rapid development.

Germany,
in particular, began to develop a vast network of rail and canals.With such an immense system of
infrastructure, it quickly became a leader in industry throughout not only Europe, but the entire world. The productive output of Germany’s Ruhr region was second only to
the powerhouse of America,
the Pittsburg
region.With Germany’s exports
growing, so did its maritime power; and as it laid plans to fund the
construction of a continuous rail grid from Berlin to Baghdad, it emerged as a
significant threat to the long-standing British world dominance.

[John Hoefle
(Time: 11:38-12:15)

“But if you promote the creative potential of the
human mind, then you also destroy the world in which the Empire is operating,
because anybody who’s got a brain, and can see a better way, is not going
to tolerate these things.And when the
United States, as you saw after the civil war, when we got the American System
up and running and started exporting it to other countries around the world, we
were transforming the world.And we were
the greatest threat to this system on the planet, and they’ve been after
us to take it down ever since.”]

[Text on screen only
(12:24)

“If ‘Berlin-Baghdad’ were achieved, a huge
block of territory producing every kind of economic wealth, and unassailable by
sea-power would be united under German authority…”British Major Laffan(excerpt taken from “The Serbs:
Guardians at the Gate”).]

Though America
could no longer be subverted by military means, such tactics were still fully
deployable by the British against other nations.With the 1888 accession of Queen Victoria’s imprudent grandson, Wilhelm II, to the
German throne, the British Empire needed only
to set the trap.Under the maintenance
of his uncle, England’s
King Edward VII, “Willy” had no difficulty in falling for it.

Earlier in the nineteenth century, Britain’s Lord Palmerston,
notorious for his foreign manipulations, had already prearranged the ploy.Were any conflict to break out between Germany and France, Palmerston well knew that
the Belgian territory would be a crucial strategic position for German
success.Thus, under his instigation, Belgium was set up as a neutral country, meaning
that should any nation violate Belgium’s
border, that nation would immediately become the target of British aggressions.Britain had but to lure them in. Germany, however, had grown to such a power that
Britain and France
alone would not be capable of defeating her.

[Lyndon LaRouche
(Time: 13:43-13:55)

“The British method is to get other people to fight a
war and kill each other, and they then come in and pick up the pieces, after
the people have exhausted themselves in killing each other.” ]

Once the British drew Russia
into an alliance against Germany
after Kaiser Wilhelm II disintegrated the alliance with Russia, the supplemental power the British
sought--to wage a two-front war against Germany--was secured.All that remained to be introduced was the
spark.The convenient assassination of
Austrian heir apparent Archduke Franz Ferdinand, carried out by means of Serbian
nationalists, ignited the situation, pitting the Germans and Austrians against
the Russians and French.The British up
to the last minute maintained a public appearance of having no interest in the
‘continental conflicts’ brewing in the summer of 1914, yet their
intent, was unrelentingly to crush Germany at all costs.

[Lyndon LaRouche
(Time: 14:50-15:24)

“So this is the way it happened, but the purpose was
to destroy, geopolitically as they call it, to destroy continental Europe,
continental Eurasia, to maintain it under the control of the British Empire,
and using whatever lies, whatever excuses and so forth they could use, whatever
motives they could cook up, to get this thing going.The essential thing is what is called
geopolitics.To maintain the maritime
power of the British system as the world Empire.”]

As World War I broke out in August 1914, and all the
intentions were unveiled, Kaiser Wilhelm II bewailed:

[Stefan
Ossenkopp: (Time 15:37) “The world will be
engulfed in the most terrible of wars, the ultimate aim of which is the ruin of
Germany.England,
France, and Russia
have conspired for our annihilation…that is the naked truth of the
situation which was slowly but surely created by Edward VII….The encirclement of Germany is at last an accomplished
fact.We have run our heads into the
noose….”]

POST-WORLD WAR I

In the aftermath of Germany's
military defeat, the British intention to stop the spread of the American
System’s potential was now revealed.

On condition of the 1918 Armistice, the army and navy were
completely dismantled, and all of Germany’s locomotives and
train cars were extracted from the country.

The 1919 Peace conference in Paris
excluded Germany
from the negotiations.The full burden
for all damages incurred through the war was heaped upon Germany.

As an initial installment, twenty billion gold marks were to
be paid to the Allied victors in the form of German bonds--redeemable either in
gold marks or physical goods.

Germany
was to be stripped of its entire merchant marine fleet. It was to produce
200,000 tons of ships each year, along with reconstruction equipment for the
Allied nations.One hundred thousand
head of cattle were to be relinquished to France
and Belgium
alone, along with hundreds of thousands of other farm animals.This would occur in tandem with a continued
naval blockade, which had already reduced the food intake level of the German
people to half that of before the war.

Not only were Germany’s materials to be
extracted, but key border territories were to be ceded to surrounding
countries.The Alsace Lorraine region,
possessing the most developed canal system for transport of materials and
products from the RhineRiver, as well as large deposits of iron ore and
coal, was to be turned over to France.
Upper Silesia, another choke-point of industry and transport, was to be ceded
to Poland.
The sudden loss of manpower, resources, rich farmland, and factories would
slash the ability to meet the reparations requirements.

These were the terms of the Versailles treaty. Were Germany to refuse them, the
defenseless nation was threatened with invasion and occupation. In the words of
the German Government, they had no choice but to sign their “own death
sentence.”

[Lyndon LaRouche
(Time: 16:49-17:04)

“You want to destroy a nation, you blame it for
something.It’s that simple.“This guy must be killed”
Why?“Well, I’ll tell you
this later, why, the reason, we gotta kill him
now.”]

In
the period between 1919 and 1921, Germany proceeded in forced march
to fulfill the payments. The German government printed paper Reichsmarks to buy up the greater part of produced goods,
in order to hand them over for reparations. Thus, since most of the production
went toward payment rather than the development of the nation, nothing remained
as a foundation to give value to the currency.

In
May of 1921, the London-steered reparations committee unveiled their second set
of terms, declaring that Germany
must pay 132 billion gold marks, an impossible sum.

In
October, after the failed attempt of German Foreign minister Walter Rathenau to
rework debt agreements with France,
the Allies increased the pressure to pay the debt. In order to offset the loss of physical capital, the
government was forced to incur more debt than the original reparations. By the
end of the year, the built up pressure of the debt and the consequent money
printing became apparent, as 262 Marks were needed to buy a single U.S. Dollar.

In
response to mounting economic pressures applied at the League of Nations
gathering in Genoa, Italy, Foreign Minister Rathenau met with Russian
representatives in nearby Rapallo, where a treatywas signed which would relieve Germany of the
portion of its reparation payments due to Russia, and improve relations between
the two countries. This positive turn offered an escape from the
ever-tightening British noose; however, such a promising agreement was not
tolerated. Two weeks after the signing of the Rapallo treaty, Rathenau was assassinated.
Within four weeks of the Rathenau murder, the Mark dropped from 345 to the
dollar to 1,254.

By the autumn of 1922, the ability to pay the financial debt
was dwindling. In the face of collapsing wages and the
continued need to service the debt, the Government was forced to rely on
unrestrained money printing, and the Mark continued its fall. This dramatic
increase in monetary aggregate required bills with higher face values than ever
before.

In January 1923, despite breakthroughs by Germany in diplomatic initiatives towards
reworking the debt agreements, the Ruhr region, which produced three-quarters
of Germany’s
coal, iron and steel, was invaded by Allied troops.Refusing to yield to military occupation, the
German government encouraged the entire working population of the Ruhr to go on strike. Production was completely shut
down. The loss of this strategic area was beyond devastating, and had three
related consequences.

First, the severing of the Ruhr
from the remainder of the German economy was a conclusive stripping of the income stream that had been used to
feed the financial debt.Second, the rest of Germany suffered huge increases in
unemployment.Third, in order to
financially support the entire working population on strike, the government was
forced to further accelerate the printing presses.

Under these conditions, the concept of saving money became
an impossibility for the German people.On the contrary, the more quickly it could be spent the better, so as
not to be left with a handful of worthless Reichsmarks.Wheelbarrows became the common mode of
transporting money to buy essential foodstuffs, which were becoming more
expensive by the minute.In the face of
such circumstances, many sought refuge in the wild frenzy of a culturally degenerate
fantasy-world.Others, equally deluded,
engaged in obsessive gambling and speculation, some attempting to make a profit
by betting against the Reichsmark in the currency
markets.

In the spring of 1923 inflation was in full bloom. By June,
nothing could stop the mark.Waves of
strikes broke out due to collapsing wages. Unemployment skyrocketed.All aspects of daily life became focused
solely upon survival, all savings disappeared, and nearly all income was
consumed in simply preventing starvation.Printing presses were run day and night to keep up with the demands of
inflation.The hyperbolic expansion of
circulating Marks was mirrored in their devaluation. By the end of the year,
the Mark had lost all of its value.The
German population was drowned in a sea of money.

The magnitude and rapidity of this blowout of the German
economy necessitated the invention of a new term: hyper-inflation.

HJALMAR SCHACHT

With a disintegrated monetary system, Germany had nowhere to turn, save a
political solution.Yet the question of
whether this solution would preserve Germany
as a nation-state, or whether it would become a mere geopolitical tool, was
left entirely up to the British Empire to
answer.

The so called `solution' to the Weimar madness was to bring in Hjalmar Horace
Greeley Schacht; German by birth, but not by breed.His closest collaborators consisted wholly of
Wall Street and London
international financial circles, such as John Foster Dulles, J.P. Morgan,
Averil Harriman and Bank of England head, Montagu Norman.Loyal to his kind, he catalyzed the further
dismantling of Germany
as a nation-state.

As newly appointed currency commissioner, and soon-to-be
president of the Reichsbank, Schacht introduced a new currency, the Rentenmark,
which was fixed in value.At an exchange
rate of one trillion marks for one Rentenmark, citizens handed in their entire
money supply for a handful of Rentenmarks.Schacht's policies brought an end to the
hyperinflation, but only by means of imposing a severe hyper-deflation,
designed to further secure the payment of the Versailles reparations.Thus, instead of feeding the monstrous debt
with worthless ink on paper, the reparations would now be directly stripped off
of the backs of the already starved population.In the name of 'balancing the budget,' any type of so called 'useless'
spending was to be cut.Cuts in credit
to industries, and a dismissal of 397,000 civil servants were accompanied by
the enforcement of high taxes and increased union busts. Almost all social
programs were cut.As a result,
employment and production plummeted.In
addition, Schacht's entrance into power was accompanied with the full
realization of his long-planned privatization of all German industry.New York and
London financial
vultures and their international syndicates quickly swept in to pick the bones
of what remained of the coal, steel, iron, and chemical industries.Those same industries, under their new
foreign controllers, would soon become infamous for their inhuman labor
policies.

As any moderately sane people would
actively resist such inhumane policies,Schacht searched for an entity that would have the stomach to adequately
enforce their execution.The remedy for
the inadequacy of the current police force to carry out Schacht’s purpose
finally came in 1933, when the London
and Wall Street cabal merged in slime-mold fashion to finance the election of
Adolf Hitler.

Europe was again launched into savage austerity and World War.

[Lyndon LaRouche
(Time: 28:27-29:35)

“Germany
was intentionally destroyed, by the French and the British, essentially the
British.It was intentionally
destroyed.They said “Die!”,
that was their intention.It was a
geopolitical move but the intention was to destroy the independent power of
nations in Eurasia, and the United States,
in part the United States.The United
States was taken as a partner under Wilson in this operation together with Teddy
Roosevelt, so we were taken in under this thing.So we went out to destroy continental Europe,
we picked on Germany,
destroyed Germany.So what was imposed on Germany at Versailles
and later, was the intent to destroy the country.And then in general, they used that as a
basis for creating a fascist system, they intended to establish a fascist
system, a world fascist system.And it
was the British who put the Nazis in power.It was not a spontaneous thing of Germany; the British stuck them in
power, deliberately.”]

THE TRIPLE CURVE

The process set into motion in Germany was one that economist
Lyndon LaRouche described as the "Triple Curve."

The threefold process of feeding a ballooning financial
bubble, using an expanding money supply looted from a collapsed physical
economy, represents a single, typical collapse function.Like the separation of the boundary layer
during transonic flight, the act of divorcing the money supply from the
physical economy generates a self-feeding shock front.This shock front develops rapidly until it
reaches a critical point of instability, where the rate of increase in the
monetary aggregates surpasses that of the financial aggregates.This singularity marks the transition between
two entirely distinct spaces, where the governing processes on one side no longer
apply on the other.As physicist and
mathematician Bernhard Riemann recognized, this type of discontinuity is
characteristic of all physical processes.Significantly, it is the most characteristic feature of the
anti-entropic development of human physical economies.

All human modes of operation constitute what is called a
phase space: a constructive-geometric space of variable curvature and
dimensionality, representing the domain of all potential activity -- in short,
a set of physical laws.

In a human economy, the boundary conditions governing these
"laws" are represented by the degree of technological development,
typified here by available energy resources.A wood burning civilization has a necessary upper limit, not only on
their total energy output, but on the possibility for that resource to sustain
a growing population.If Man were merely
an animal, the depletion of that resource base would result in periodic
fluctuations in the human population: a cycle of growth and collapse,
maintaining the human population at constant median value, like that of every
other living creature on Earth.On the
contrary, however, the characteristic of human economic development is to
surpass each encountered boundary by the introduction of newly discovered principles,
transitioning from resource base to resource base, forming, in effect, a
continuous curve of discontinuities.

This is the reflection in the large of the human creative
capability which empire seeks to eliminate.

THE BOOMERS

[John Hoefle
(Time: 32:36-34:01)

“They had an operation to destroy us going into World
War II where they wanted this global fascist movement, and there was an
attempt, they had the planned coup in the United States against Franklin
Roosevelt for example, but you had Mussolini, you had Hitler, you had these
fascist movements in all sorts of places around the world. But they blew it
because Hitler was out of control and he moved the wrong way, he came after
Europe instead of going after and destroying Russia.So that caused a problem, then they had to
defend themselves against Hitler, when they had been planning on using Hitler
as a weapon against Russia.And the other problem was that the American
System rose up to bite them of FDR, who took the constitution seriously and
intervened to protect the nation-state so that after the war, we wound up as
the most powerful nation on the face of the earth.Industrially we were very strong, nobody
could touch us, militarily, nobody could touch us.So they came out of the war in exactly the
opposite shape they had planned.Instead
of running the world, they were on the run.So their response was to try to bring us down from within, because that
is all they had.”]

Particularly during the period immediately following the
second World War, it would not have been possible to destroy the American
system militarily within the United
States itself.The British Hitler project had failed, and
the empire had been forced to come crawling to the United States for assistance in
stopping their Frankenstein monster.But
this was no longer the United States of Ku Klux Klan booster Woodrow
Wilson.American President Franklin
Delano Roosevelt's economic measures had curbed the banking establishment on Wall St., and his
recovery programs had created an explosion of technological and economic
optimism that far exceeded what the British had sought to destroy in Germany.

To stop this, it was necessary for the British to
reestablish the influence of their agents within the United States.On March 5, 1946, British Prime Minister
Winston Churchill delivered a speech at WestminsterCollege, in Fulton, Missouri,
which later became known as his "Iron Curtain Speech."

[Winston Churchill“Iron Curtain Speech”
(Time:35:12)

“From Stettin in the Baltic to Trieste
in the Adriatic an iron curtain has descended
across the Continent.Behind that line
lie all the capitals of the ancient states of central and Eastern
Europe.Warsaw, Berlin,
Prague, Vienna, Budapest, Belgrade, Bucharest and Sofia; all these famous
cities and the populations around them lie in what I must call the Soviet
sphere, and all are subject, in one form or another, not only to Soviet
influence but to a very high and in some cases increasing measure of
control…”

With this, a project was launched to unleash in the United States the same type of fascism as the
British had established throughout Europe in
the prior decade.McCarthyism, better
termed "Trumanism," turned the U. S. into a police state.It was generally recognized by intelligent
thinkers that this was a repeat of the fascist terror that had just been
defeated in Europe:

These police state conditions prepared the generation just
returning from the war to raise what has been, without question, the most
gullible generation the United
States has ever produced.

[“Boys with Dad”
clip/Kennedy Assassination announcement:
"These boys greet their dad as though they are genuinely glad to see him;
as though had really missed being away from him during the day and are anxious
to talk to him. This is the time for pleasant discussion, in a thoroughly
relaxed mood. They don't pick this time of the day to spring unpleasant
surprises on Dad; if they have disagreeable news, they'll postpone the
discussion until another time. And this is no time to DUN your Father for a
raise in your allowance, new clothes, or argue about other financial
matters."

TV-Reporter:
„Good afternoon, Ladies and Gentlemen, you'll excuse the fact that I'm
out of breath, but, about 10 or 15 minutes ago, a tragic thing from all
indications at this point has happened in the City of Dallas. Let me quote to you this: President
Kennedy and Governor John Connelly have been cut down by assassin's bullets in
downtown Dallas.
"]

The Baby Boomers were less a generation than they were a
product of an extensive social manipulation.As had been done in Europe, earlier, the shock trauma of a series of
traumatic events were used to create a broken and malleable generation, ripe
for the kinds of social engineering required to uproot the type of American
optimism which the global financial elites, centered in the City of London, so despised.

This created the conditions for the launching of the
rock-drugs-sex existentialist counterculture which dominated the Baby Boomer
generation.This time, unlike Germany
after WWI, there was no need for a military to enforce the destruction of
American industry.The 68ers had been
imbued with a passionate hatred for the human creative capacity, a passion
which had only to be steered by the manipulation of popular culture.

[John Hoefle (Time: 38:37-40:36)

“So 1968 there is another event, a speech at the
Bilderberger Meeting in 1968 by a man named George Ball.And George Ball was a member of the steering
committee of the Bilderbergers, which was a primarily
European oligarchic fascist organization, Prince Bernhard, the Nazi from the Netherlands
and others, we’ve said a lot about the Bilderbergers.He was a banker, a senior banker at Lehman
Brothers.Eastern establishment, former
state department, diplomat, a very important man in our government.So what George Ball was laying out was not
some theory about what we ought to do, what George Ball was doing was telling
people ‘Here’s the new
plan.’And the new plan was
something he called the world company.Now the idea of the world company is that nation-states cannot be
trusted to manage the world because they are selfish.They look out for their own
self-interest.Nations think that just
because they happen to sit on top of raw materials, that those raw materials
belong to them.And we all know that in
a period of Malthusian shortages, of overpopulation, of scarce resources, that
this can’t be tolerated.You
can’t allow these selfish nations to hold the world hostage, so we have
to fix that.Now we are going to fix that
with a corporate structure because the corporation isn’t bound by these
kinds of old-fashioned silly ideas.The
corporation is more interested in efficiency.Where getting the raw materials and distributing them in the most
efficient way, which means at the most profit.”]

Even as some of the polymorphically
perverse hippies of the 60s transformed, throughout the seventies, into the
"greed is good" capitalists of the 80s, they never lost their utter
aversion to all things technological.The real technological optimism of Roosevelt's
recovery was supplanted by the fraud of "information
technology."Science was replaced
by science-fiction; and the Boomers sought to make their programmed fantasies a
reality.

The cultural willingness to accept the first phase of the
triple curve collapse function had been established.

Upon accomplishing this, the financial establishment
launched a full scale takedown of the social and economic reforms created by
Franklin Roosevelt.Throughout the
course of the 1970s, a series of operations were run with the intention of
replacing the U.S.
physical economy with a massive, parasitical debt bubble.

In 1971, a grouping of financier interests, led by George
Schultz and Felix Rohatyn, made the decision to officially decouple the dollar
from gold.This marked the end of the
Bretton Woods system of international development, as it had been established
by Roosevelt.

[Excerpt from Nixon
Speech (Time: 42:03)

“We will press for the necessary reforms to set up an
urgently needed new international monetary system.”]

The dollar was now officially detached from the physical
economy, and free to be transformed entirely into an instrument of
speculation.Currency exchange rates
were permitted to fluctuate wildly, and long term investment into national
development projects became an impossibility for the underdeveloped areas of
the globe.

This was consolidated in the period between 1973 and 1974,
when a staged oil crisis was used to create the so-called "Euro dollar
market."Royal Dutch Shell and its
bankers, Rothschild and Felix Rohatyn’s Lazard,
set up the oil spot market and made the dollar the currency of the
international oil trade.This raised
the value of the dollar, while at the same time placing a huge pool of dollars
into the hands of speculators outside of the United States, to be used as the
major instrument in the attacks which were to follow.

Throughout the 1970s the very notion of a physically
productive enterprise was eaten up in a series of so-called "mergers and
acquisitions."In reality, this
represented a steady rebuilding of the kind of cartelization which Roosevelt had worked so hard to destroy.The legitimate American entrepreneurial
enterprise was slowly overrun by profit-obsessed mega-corporations.Leveraged buyouts of businesses became the
norm.Formerly productive industries
were looted, and turned into short term money making machines.As in WeimarGermany under the conditions of Versailles, the value of
financial aggregates, again in the form of debt and stock market valuation,
began to spiral upwards out of control.

In 1975, Felix Rohatyn, playing the role of a modern day
Hjalmar Schacht, was appointed head of the Municipal Assistance Corporation --
Big MAC -- in charge of handling the financial crisis which New York City was then experiencing.Aside from the brutal austerity policies
implemented by Rohatyn during that process, this set the standard for the
ultimate aims of Rohatyn and his financial controllers: private money would now
be allowed to run public policy.

Finally, in 1979, Federal Reserve Chairman Paul Volcker
instituted a policy which the Council on Foreign Relations had dubbed the
"controlled disintegration of the U.S. economy.This took the form of an enormous hike in the
interest rate, a move which devastated the U.S. productive sector.With the rate of interest on loans in the
range of twenty-one percent per year, long term investments became an
impossibility.Any business venture with
the intent of promoting physical development was doomed to failure, and short
term money making schemes thrived.This
marked the beginning a period of absolute lunacy economically, and culturally.

[John Hoefle
(Time: 45:33-45:58)

“Basically in the 1980s you had all of these rules
that were designed to protect the economy and protect citizens from these
rapacious banking practices were dismantled and the policies were set just the
other way to favor this sort of thing and encourage it.So this continued, by the end of the 1980s
the whole system was bankrupt.”]

During this period, one of the major firewalls established
by Franklin Roosevelt to defend the American people was deliberately targeted
and destroyed.The Savings and Loan banks
-- barred from speculative activities by Roosevelt
in order to ensure the availability of low interest, long term loans for
housing and other needs -- were opened to predatory speculation.

The model for the modern stock market was established, nominally,
by Michael Milken, who used mafia money to build up Las Vegas, inventing the so-called "junk
bond."

[John Hoefle
(Time:46:40-48:12)

“The case of Michael Milken
illustrates how the system actually works because what Milken did in, I think
it was about 1978, was to set up in Beverly Hills, California an office of
Drexel Burnham Lambert the investment bank which was based in New York and the
Beverly Hills office was a place where he started to sell junk bonds, he
created the junk bond business.And a junk
bond is by definition a corporate security which has a credit rating of less
than investment grade, so it is commonly called a junk bond or a high yield
bond.Now to understand it you have to
take it out of the realm of a business story or a financial story, it’s
not really about bond ratings or things like that.What they would do is that Milken would go to
a company, let’s say a casino Stevewin’s
casino because he helped build Las
Vegas and he would say ‘ok, we can raise money
for you.You want to build a fancy new
casino we’ll raise money by selling bonds.’And up to that point the bond market had been
only investment grade blue chip companies, people who thought of bonds as being
very safe.So this idea that you would
have these companies that might not really make it, that were somewhat shaky,
issued bonds this was a new thing.” ]

Milken's monsters, as they were known, became the model for
stock market speculation, finally obliterating the already thin line between organized
crime and Wall Street.

By the end of the 1980s the entire U.S. Economy was in a
state of collapse.This collapse
culminated with "Black Monday," in October of 1987, when the markets
plunged twenty percent, setting the stage for the creation of the largest
financial bubble in history by the new chairman of the Federal Reserve, Alan
Greenspan, who had been installed shortly before the collapse.

[Lyndon LaRouche (48:58-49:24)

“At that point Greenspan said
‘I’m coming in, I’m coming in, I’m going to fix
everything! And he started this particular hyperinflationary system. He said we
can invent money, and it was based on Michael Milken.And Michael Milken’s kind of experiment
in California.Michael Milken went to prison for that.Greenspan legalized it and expanded
it.”]

Again, an increasing flow of money, looted from the
collapsing physical economy, was required to feed this ballooning bubble.This time, however, the money was not paper,
but digital.And this time, the effects
of hyperinflation were partially masked for the American population by the
introduction of a policy of what was called, euphemistically,
globalization.

Under globalization, the United States trade policy was
restructured after the model of the British East India
Company.The cost of goods, which would
otherwise be skyrocketing, was lowered, in essence, by looting the caloric
intake of the populations of the developing world.This did not reduce the effects of inflation,
so much as spread it globally.Meanwhile, U.S.
production was gutted even further; literally packed up and shipped overseas,
where an underfed, undereducated, overworked labor force cheapened the
immediate costs of production.At the
same time, a move was made to addict the American population to lines of
credit.

[John Hoefle (50:40-51:32)

“The first thing you do is you
make sure that they don’t earn enough money to buy what they need without
taking on debt and that comes from killing the productive side of the
economy.So then instead of having high
paying manufacturing jobs and a lot of high paying jobs, you have these low
paying service jobs retail jobs, things like that.With globalization we’ve seen a
continuing downward push on wages under the theory that we have to be
competitive in wages with some country on the other side of the world.This method of using debt to control is very
important and it also gives you some insight considering how in debt the United States
is.What some of the levers are that are
used to control us.”]

Over the course of the 90’s, the mechanisms created by
Greenspan for rolling over the debt continued to snowball.The derivatives market spread across the
globe.

[Lyndon LaRouche (51:54-53:18)

“Every time they turn around
they will create a debt.They will
calculate the anticipated income on the debt that they just created, they will
then capitalize the income they just fictionalized, they will take a multiplier
effect let’s say 3% ratio to the corresponding figure so now you
capitalize a debt, an asset of that magnitude, there’s nothing behind it,
it’s only the imagination.So
it’s like what happened in Weimar
1923.Only in the imagination is this
system viable.This system is measured
in these kinds of estimations, in quadrillions of dollars of estimated value but
nobody ever produced those quadrillions of dollars.They are not being produced now, they never
were produced which means the system depends upon the assumed income like an
interest income on a debt which is not real.So it’s not the fact that you have a boundary condition of a
finite amount of value, the nominal value is just expanding with no reason
whatsoever in absolute madness.Now you
are calculating the profit based on the yield the average yield on this mass of
fictitious value.”]

This carnival reached its limit in the autumn of 1998.

[John Hoefle (53:25-54:06)

“In 1998 you had the Russian
government announce that it was postponing payments on some of its government
bonds the GKO bonds.This sent shockwaves through the financial world not because the amount
of money was significant because it really wasn’t that much money, but
because here was a sovereign government telling the financial markets
‘no’.If a government says
‘no’ and can back that up, then the game is over.”]

In a desperate effort to re-inflate a collapsing system, the
Y 2K scam was launched.Consumers were
convinced that come January 1st, 2000, all functions run on the two digit date
system would come to a screeching halt. Calendars would roll over from December
1999, straight to January 1900, unless new software was purchased to further
inflate the tech bubble.Hotshots with
no skills other than website design became millionaires overnight.The NASDAQ stock-market index soared, nearly
tripling over the next 18 months.

[John Hoefle (54:48-56:01)

“The way they dealt with this
was a thing that George Soros referred to as the wall of money.The central banks started lowering their
interest rates and flooding the markets with liquidity trying to get people to
buy.And then you had this scheme to
create a tech bubble to pump up the high tech stocks, the internet stocks,
computer stocks and that sort of thing as a way of getting things going again,
so they started pumping a bunch of money into these things and actually
created, going into the last half of 1999, a mania.So we went from ‘omigod
the system just died!’ to a mania in a year.And in the mania, the tech bubble mania,
everybody was buying stock, you know your cabby would give you stock tips that
kind of stuff and everybody wanted in on it.People were using their credit cards to buy stock because the things
were all going straight up and they just kept going up and up and up until it
blew up and then it was all over.But
the effect of it was to bring the system back.It restarted it.”]

After the blowout of the Y
2K bubble, the critical point of discontinuity was reached. The final phases of
looting the U. S.
physical economy had to commence, and new avenues of money pumping had to be
found. The looming specter of terrorism following the September Eleventh
attacks distracted the population from the hemorrhaging economy, while serving
as yet another pretense to pump in more cash. Simultaneously, enormous amounts
of money were offered to the now deregulated banks for home loans. Banks began
appraising housing prices at higher and higher levels, and new housing
development skyrocketed.

[Lyndon LaRouche ((56:49-57:17)

“This is especially the Baby
Boomers.‘I want this, I want
this.I need this.I need two houses.I’m going to go into debt through
mortgage to have a house, a house that I like and I’m going to get a good
deal.I’m going to swindle my
neighbors’ whatever.‘Then
I’m going to buy a second house on the same terms, using the credit for
my first house to get a second house then I’m going to rent this out to
people. I’m going to get rich!”]

The income streams from
these new forms of money printing were used to inflate market values even
further, while at the same time vulture funds swept in to buy up the last
remnants of the U. S.
productive sector.

By this time, the
electricity grid was wrecked, the steel industry was shut down, and the United States
automotive industry was packaged up and shipped out of the country.In many parts of the country, though reports
of inflation were kept artificially low, the average cost of housing began to
far exceed the average income of the population.

[John Hoefle (57:56-58:22)

“The system is geared towards
producing more and more higher mortgages at higher prices.That what’s called a housing market is
actually not about housing it’s about mortgages.It’s the selling of mortgages.It’s debt forming, it’s all about
debt.You need a house in order to
create the debt, so you build a house.But the purpose of all of this, what drives it is not houses, it’s
mortgages.”]

With families unable to
afford new homes, sales began to slow. A new means was needed to keep the
bubble going. This came to be known by the name of sub-prime lending.

[John Hoefle (58:38-59:51)

“In 2005 the rate of increase
of new money coming in as mortgages began to decline.And for a system like this, that’s
deadly.So the rate of the rate of the
money coming in began to slow, in part because they were pricing the houses out
of reach of much of the population and as we have subsequently seen as this
process stops, everything starts to blow up.So they didn’t want it to blow up so they started easing the terms
of the loans to try to sell houses that people couldn’t afford to people
anyway.The whole idea was to sell
houses that people couldn’t afford because that was necessary to keep the
system going.And that’s what the
sub-prime loans were, that’s what these alt A loans, thelow-documentation, no documentation,
adjustable rate mortgages and all these things, this is all a response to the
fact that they had priced themselves out of the market, the housing market was
beginning to collapse and they were doing everything they could to keep it
going.”]

By offering more and more
risky loans to more and more people who could not afford them, the system
managed to keep itself afloat, though it was clear to those in the know that,
at this point, the party was already over.

[John Hoefle (01:00-01:01)

“And this was done from the
top down, this was not the mortgage lenders, so called sub-prime lenders doing
this, because they were merely creatures of the system.A sub-prime lender makes loans and then turns
around and sells them to some bigger institution, if the bigger institutions
don’t want them, then the sub-prime lender goes out of business.But they were just creatures intended as
middle-men because they couldn’t survive this process, sooner or later it
would blow up.So the big banks
didn’t really want to do this thing on their own, so they had these
middle men to do it. And that’s what blew up, that’s what became
known as the sub-prime crisis.” ]

Finally, the banking establishment began to realize that the
situation was untenable.Unable to
stop the blowout, the bankers resorted to shaping how it would be
perceived.In June of 2007, the largest
sub-prime lender, Bear Stearns, found that its paper was no longer being
accepted at face value.

[Jim Cramer on Bear Sterns Clip (01:01-01:02)

“When I go to Bear Sterns, I don’t want to create
fear,I like Bear Sterns very much but I
think at this stage this is not a good call, they shouldn’t have done it,
and they should have just said ‘you know what we’re doing
well’ and don’t say another thing, just don’t say it! Because
it does not inspire confidence to have 10 headlines coming over about what to
do, I don’t like it !! This is
about Bernanke, he has to be on that call, forget the investors, the investors
are going to do—if Bernanke, Bernanke needs to open the discount window,
that’s how bad things are out there!Bernanke needs to focus on this! Alan Greenspan told everyone to take a
teaser rate and then raised the rates 17 times, and Bernanke is being an
academic, it is no time to be an
academic, it is time to get on the Bear Sterns call! Listen! Open the door-fed
window, he has no idea how bad it is
out there!!He has no idea!! He has no
idea!! I have talked to the heads of almost every single one of these firms in
the last 72 hours, and he has NO IDEA what it’s like out there!!NONE!!”]

This triggered a chain reaction, and over eighty mortgage
lenders disappeared.The US Treasury and
European Central Bank were buffaloed by the City of London into pumping hundreds of billions of
dollars into the system by the end of the year, in order to prevent the major
banks from going under.Meanwhile, the U. S.
population was being primed for a fascist intervention.

[John Hoefle (01:02-

“Now there is no financial
solution to this because the financial system has in fact died.So the solution is in the political
realm.”]

Today, as the world faces a crisis comparable to that of
1923, the political solution proffered by some is massive cuts in social
services, such as health care and pensions.Like feudal barons, financial agencies are moving to assume control over
the nation's infrastructure, restricting its usage to those rich enough to pay
the rising tolls.This time, the
apparatus which would be used is what is termed, misleadingly, a Public-Private
Partnership.

[John Hoefle (01:03-01:04)

“A public-private partnership
is a way in which a private corporation can take over infrastructure which was
built by tax payer money and then charge tax payers to use it, is basically the
simple answer in the context of the way these things are being used today.That the idea is since government is that
since governments can’t afford to build all the infrastructure they need
to build, that the private sector will help them out and that in return for
helping build infrastructure the private sector gets to own it, or own some of
the income stream from it.”]

In what is a sick irony: the very same people who have made
it impossible to maintain infrastructure, now intend to enslave the nation by
possessing what little of it remains.In
true Mussolini fashion, the actual need for infrastructure development is being
used as the sugar-coating for hoodwinking the population into swallowing the
poisonous pill of corporativism.

[Schwarzenegger/Bloomberg Press Conference
(01:04-01:06)

Bloomberg:
“Make no mistake about it, we have an infrastructure crisis.Non-stop television showed us in New Orleans
when the levees broke and in Minneapolis when the bridge collapsed, but the
governors and the mayors of this country everyday see it at an operational
level:Bridges that are rusting away,
and tracks that can’t carry high speed trains and power transmission
lines that can’t keep up with demand, and airports that need new runways,
water lines that need back up systems, and sewerage plants that leak into
the……

Q:This one is for Governor Schwarzenegger and
Mayor Bloomberg, how do you answer those that given both of your records in
killer fiscal austerity policies, would just say that this infrastructure
initiative is another form of Mussolini corporativism?

Schwarzenegger:
“First of all let me just say, whatever you call it, the bottom line is
that we need to build the infrastructure because we have heard other
arguments…”

Bloomberg:
“Infrastructure is the most populist thing you can do.”

Schwarzenegger:
“We see now that there is more money in the private sector than in the
public sector, so I think it is common sense that we say here’s a way to
do it.I think more and more private
investors are interested in getting involved in those kinds of projects.I’ve used an example for instance up in
British Columbia where we have seen tremendous amounts of buildings going on
where there is a public private partnerships and the labor is happy, the
political leaders are happy, the people are happy, the workers are happy
because everyone is working.So I think
it’s great benefit and that’s what we want to do here in California and that’s what we ought to do all over
the United States.”

Bloomberg: “I think another
thing, with private capital you can do things that you can’t do with the
public sector’s money.” ]

[John Hoefle (01:06)

“It’s always more
expensive for private corporations to do these things than the government.The government is much more efficient at it
and the government doesn’t have to make a profit out of it, whereas the
private companies won’t do if they can’t make a profit, so
it’s inherently more expensive, and it’s not really necessary if
you have a proper government credit system.”]

In aerodynamics, the singularity of the shock front is
generated as a result of the otherwise continuous functions of fluid flow.On the other side of this front, the usual
laws of aerodynamics are altered.Actions which once caused an aircraft to gain altitude now lock it permanently
into a fatal nosedive.The same is true
of an economic shock-front.The
"usual" economic measures of lowering interest rates, raising
interest rates, or issuing stimulus packages, are all mere monetary measures
which simply serve to contribute to the hyperinflationary collapse.

[John Hoefle (01:07)

“What they’re doing with
all of these schemes, the Fed loans, the money pumping, the stimulus plan, all
of these things, is basically hyperinflationary.They want to roll this whole thing
over.”]

Once again, as in WeimarGermany,
we have reached a point where the solution must be a political one.

[Lyndon LaRouche (01:07-01:08)

“We either go to this reform
or we go to fascism, in that direction, and we have been drifting towards a fascist
movement in policy, which was implicitly going toward hyperinflation.” ]

The American population and the world now face an
opportunity which was never given to WeimarGermany.

[Lyndon LaRouche (01:08)

“Under our constitution with a
President and with the backing of a Congress which supports him in this, the United States
can turn on a dime.Precisely such is
the key to my proposed legislation which is now before the Congress.That is, you cannot reform this system, you
cannot improve it, it cannot work, there is no way of escaping catastrophe
globally under this system.None.What you can do, and you can do under our
constitution, the Federal Government can act to create a firewall in which we
protect for example mortgages and banks, that is legitimate banks, chartered
banks.We move to protect them
absolutely under the same under the same thing as a bankruptcy procedure.In other words you are putting the system into
bankruptcy under the authority of the Federal Government, that means that no
household will have an eviction.We’ll sort it out later.No
bank will be shut down, no regular bank, no chartered bank, they are protected
under bankruptcy.”]

Since August of 2007, the LaRouche Youth Movement has been
in a full scale mobilization to prevent the rise of fascism in the United States.LaRouche has issued a piece of
legislation--designed to halt the wave of foreclosures hitting the United
States population, while at the same time re-instituting the types of banking
and financial controls which are necessary for the development of human
economy.

[HBPA city council testimonials (01:10-

“I want to speak on an issue
that has national and international implications…”

“I’d like to call attention to a
piece of emergency firewall legislation that is currently circulating the United States”

“I am a full time political
organizer for the LaRouche Political Action Committee”

“I also work for the LaRouche
Political Action Committee”

“I am also with the LaRouche
Political Action Committee organizing for the Homeowners and Bank Protection
Act”

“We’re right now in the
middle of a national mobilization”

“Right now the financial ash
is falling on our heads...”

“Huge losses, billions of
dollars…”

“We’re looking at
nationwide, millions of homeowners being foreclosed on”

“People are typically unaware
that 60% of all the assets of the Banks of the United States are tied up in this
housing bubble, so it does mean a financial collapse.”

“The Federal Reserve, the
European Central Bank and other central banks have thus far had a policy of
providing whatever liquidity was necessary to plug the holes in bank’s
balance sheets…”

“You know the exact same
process that was done in Germany
in 1923 when you had a hyperinflationary blowout there…”

“This is something which is
systemic, it’s a global problem.”

“There is something that can
be done about it.”

“The proposal that Lyndon
LaRouche has made…”

“The Homeowner and Bank
Protection Act”

“The Homeowners and Bank
Protection Act”

“Take action by passing a resolution
in support of the Homeowners and Bank Protection Act of 2007”

“So these are the three
provisions in the act”

“the three main points of the
legislation in terms of freezing foreclosures, setting up a system of rental
payments, and a transition period where the banks can be recapitalized to
actually begin to fund infrastructure projects and other productive
investments.”

“for the Federal government to
freeze foreclosures as we had done in 1933 under President Franklin
Roosevelt.”

“re-write the mortgages, and
this is the big one, re-write the mortgages to the fair value of the home not
just changing the interest rate, change the principle in it.”

“One thing you have to do that
is inevitable is to re-regulate the banking system.”

“Congress must establish a
federal agency to place the federal and state chartered banks under
protection…”

“State governments shall
assume the administrative responsibilities for implementing the program,
including the rental assessments to designated banks with the Federal Government
providing the necessary credits and guarantees to assure the successful
transition.”

“What we have proposed is not
only a re-proposal of something that Mr. President Franklin Roosevelt
did.”

“That’s the kind of
policy and orientation that Lyndon LaRouche represents, that’s what the
Homeowner and Bank Protection Act represents, it would be the first step
declaring we’re in a crisis and declaring that the number one
constitutional obligation the U.S. population, keep society stable in the face
of an economic crisis, and then from there we need to move with a shift in
policy nationally away from a system of globalization and cheap labor and back
towards investment in making the United States a productive part of the world
economy once again.”

“Send a message to
Congress”

“Use the power of government
to protect populations during a chaotic economic crisis.”

“I’ve recently returned
from Washington, DC where I am lobbying Congress on behalf of
this policy, but if you look on the back of the sheet that we passed out you
will see support from across the nation.”

“to create a groundswell in
the country”

“banding together to fight for
the general welfare of the nation. That’s the principle of our
constitution.”

“The reason why we are here is
because we have created a lynch mob for the good and you guys are a key part of
that”

“The good news is that we do
have a capability. We do have a power which through cities and state
legislatures we have a voice for the lower 80%”

“We’re organizers. We
organize in the street 6 days a week, so we are very, we know a lot about what
the population is thinking...”

“We find now, we’re in
the midst of a presidential campaign, the issue of politics is on
people’s minds…being able to speak truth in a time of crisis when
most people aren’t willing to do it, that and nothing else qualifies one
for leadership which is not a question of position, it’s not a question
of influence or money but at the point that we’ve reached right now it is
a question of who’s willing to tell the truth and act on it, and I think
that’s something that’s going to give people inspiration and will
give us a pathway out of the crisis.”]

[John
Hoefle (01:14)

“You’re not going to
lose your home just because the system is blowing up; we’re going to
protect you. That’s step one.The other side of it, the bank protection act
part is that we’re going to protect the banking system.Not that we’re going to protect
institutions necessarily, but we are going to protect the essential banking
functions upon which the economy depends.That you can’t have a functioning economy without some form of an
effective banking system, but that this banking system should be a banking
system and not a casino.”]

[Lyndon
LaRouche (01:15)

“We must keep, what these
idiots with their stimulation packages have no comprehension of, what we must
do is we must keep the private chartered banks functioning as well as not
evicting homeowners.So therefore you
have to maintain the communities and the nation as physically functioning
entities.You do that by taking federal
credit which is provided largely into the chartered banking system so therefore
there’s always enough money in the credit of the system to maintain the
system and its physical functions, essential physical functions, people don’t
die, the pensions are paid and so forth, that sort of thing.But the other thing, the other music we
don’t dance to. That simple.”]

To buttress this, Lyndon LaRouche has stressed the necessity
of returning to a two-tiered interest rate, designed to promote the growth of
American manufacturing, and end the control of predatory speculation over U. S.
fiscal policy.

[Lyndon LaRouche (01:16)

“The government controls the credit. The government is a sovereign. The
government is the only one that is allowed to utter money, utter currency. The
government now puts control over its own money, that it creates. No other money
is allowed to be generated, except by treaty agreements with other nations. SO,
you control all the money, as government money, going into the system. So, that
money is loaned. Now all the money already in the system which goes into the
form of loans for banks, will also get the same kind of implicit benefit.
Because now you have a 1 to 2 percent rate throughout the entire banking
system, private and public. But the speculators are just sort of stuck out
there and they're just going to sort of dwindle on the vine; shaking, drying in
the wind. And so that's the way we maintain the system, by regulation and by
adjustments in these arrangements. And that will work instantly. The Federal
Government has to guarantee the private banks, that is, the chartered private
banks, it has to guarantee the householders living in their communities and living
in their homes. Those two things must be guaranteed, and some other things at
the same time. So you let the rest of this stuff work itself out. 'Folks,
interest rate's going up? Fine!' But you have to maintain an international
fixed exchange rate system among major nations, and you must maintain the
stability of your own internal physical economy.”

“So you're essentially going
to dry out whole sections of the market, which are going to have to bankrupt
themselves with being useless– we're going to get rid of them. But the
concern is, you've got a population of a certain size, communities, so forth,
you want to make sure that community, that population is stable. And you let
the other things which are essentially parasitical die of their own logic. So you
have a two credit system.”

--“By freeing government, the
government operation and government credit from this high priced credit private
credit, what you do is you have set essentially, creating a fixed-exchange rate
system in the world.Now you create a
system where nations, their currency values are fixed with respect to each
other.So you put a lid on
inflation.Now you can make long term
credit and because if the rate of interest is fluctuating because of inflation
you cannot engage in long term investments.We need a lot of long term investments, physical investments to save the
world.So you need a two credit
system.”]

[John Hoefle (01:17)

“The first tier is for
productive activities.If we are, that
the root of our problem is a physical economic collapse, that’s more
important than the financial side of it.The fact that our industry has collapsed, that we don’t produce
things anymore, that we’ve been living off of our infrastructure,
we’ve been cannibalizing our economy.You know if you look at the triple curve the upper curves, the money
curve can go up hundreds of percents, thousands of percents, the bottom curve
can only fall a hundred percent, but that hundred percent is what kills
you.And so you need to start rebuilding
the productive end of your economy, you need to provide money to do this at low
interest rates so that what you’re spending your money for is not the
cost of borrowing money, but you’re spending your money to actually get
the most productive boost you can, the most bang for the buck, out of your
actual production, that’s what you want to spend your money on improving
things.So you have directed government
credit for specific projects, these are certain activities that we find
necessary, and if you’re going to engage in these activities we’re
going to provide you with loans to do them at low interest rates, one or two
percent.”]

With the sovereignty of the United
States thus re-established, in opposition to the policy
of empire, it would finally become possible to realize the vision which Henry
Carey presented for the development of the continental United States and the world.

[Lyndon LaRouche (01:19)

“If you can say you yourself,
this is bullshit, and then you can say it out loud to the people who believe in
it, you’re making it, you’re doing fine, but if you can’t
you’re going to cave in ‘well, I don’t want to say that you
know I agree with you but I don’t want to say that publicly.I gotta go along
with it though’, and that’s where the crap comes in.”]

[John Hoefle (01:19)

“It reminds me of the
Malaysian monkey trap, where they catch monkeys by putting a nut in a jar with
a narrow neck, and the neck of the jar is wide enough so that the monkey can
reach in and grab the nut, but once he grabs the nut he can’t pull his
hand out, and all the monkey has to do to get away is let the nut go and pull
his hand out and then he’s free.But the monkey won’t do it.The monkey keeps holding on ‘this is mine, it’s mine, I
won’t let it go’.Then
whoever put the trap there comes along later and then they kill the monkey and
eat it.And that’s essentially the
dilemma we’re faced with.This
paper has no value, this system is bankrupt.If we keep holding on to it we’re only going to destroy
ourselves.So the solution is simple, we
just have to let it go.And if you let
it go, admit that it’s bankrupt, tell the truth, then we can turn our
attention to what we should have been doing all along, which is building a
productive side of our economy using the creative power of the human mind to
develop higher and higher technologies, to go to a nuclear economy, maglev
trains, all sorts of new raw materials, to free the world from a lot of the
problems we have, existing shortages of raw materials (although a lot of that
is not actually true), but still you move on and progress, and that’s
what we can do.We can have a really
bright future if we just let this go.”]

What we are facing in our nation today, is not simply the drama of
a long primary election campaign, but a war for the survival of American
forces, against those of the British Empire.
Where things go in the U.S.
and in the world at large, will not be decided at some political convention in
August, nor at the general election in November. The strategic answers which
determine the future of this nation and the planet, will be determined by how
the leadership of this nation responds to the strategic questions before us,
right now.

Both as a former Presidential candidate, a statesman, an economist,
and as the chairman and founder of the LaRouche Political Action Committee,
Lyndon LaRouche has put those questions before us, repeatedly. It has been the
organizing of his movement that has largely shaped the issues in the ongoing
national election. But not enough of the American people yet understand what is
at stake. Not enough of our leaders, or would-be leaders, understand.

On May 7, Lyndon LaRouche
delivered an address in Washington,
DC at a town meeting sponsored by
the Lyndon LaRouche Political Action Committee (L-PAC), to once again, outline
how the nation and world has gotten into the mess it is in, and, more
importantly, how we can save civilization from doom. The event was broadcast
live over the internet.

This edition of The LaRouche
Connection features the first hour of Mr. LaRouche’s opening remarks.
The entire event, including two hours of discussion, was moderated by Debra Freeman.

LaRouche: “The issue is not the election. The election is a battle
in a war. It is not something unto itself. The result of this election, in
itself, is a matter of indifference. It’s a question of how the battle is
won and lost which is important.”

LaRouche: “The issue is World War III—between the
British Empire, better known as the Anglo-Dutch Liberal banking financial
system, and the principal nations of Eurasia—Russia, China, India.
[These] and other nations, are the targets of intended warfare by the British Empire, which is already turning Continental
Europe into a mere colony, through the program of the Lisbon Treaty. If the
Lisbon Treaty were adopted, there would not be a single nation on the continent
of Europe, west of Belarus
and Russia,
which had any sovereignty whatsoever. The British Empire would control the
entirety of that region of Europe, as a puppet
of the Angle-Dutch Liberal financial interests. It is those interests,
represented in the U.S.
for a long time, especially since 1971-2, which have taken control of the
dollar. Now they’re moving in for the kill. And that’s the
issue.”

LaRouche: “If they control the U.S.
and parts of Europe, under the Lisbon Treaty, then you will have an actual
fighting war emerging on this planet, against the continent of Africa and much
of the continent of Asia, and other places.
You will have dictatorship; you will have mass starvation. That’s part of
the British program! It’s the food war!”

LaRouche: “We’re not dealing with an election.
We’re dealing with whether there is in the Untied States, in the top
layers of society, the moral fitness to survive! … If we allow this to
happen, we will get the same kind of treatment that the victims of Mussolini,
Hitler, and so forth, suffered. We have to win this war against that evil
empire!”

LaRouche: “[President] Franklin Roosevelt’s intention,
at the close of World War II, was to eliminate colonialism and all forms of
imperialism from this planet. Once peace had been secured, the power of the U.S., developed
through its agro-industrial and scientific power, was going to be used, by
transforming its war machine into a machine of production. And as Roosevelt had
spelled out specifically, to take the colonial nations of the world and
continents like Africa, and free them, not only by giving them political
freedom, but by giving them economic assistance and technology, to solve their
problems, where they could emerge from being colonies and prey, to being
essentially self-determining. And Roosevelt’s
intention was to form a receptacle, called the United Nations, as an assembly
of nations, including many which would be newly created as freed from former
colonies, to sovereign national status. And the minute that pig Harry Truman
walked in, to replace Roosevelt, within hours of Roosevelt’s
death, Truman went to the side of Churchill. And Churchill’s policy was
to prevent Roosevelt’s policy from
succeeding, because the British were determined to maintain their
empire.”

LaRouche: “The white-collar children of Truman, the
‘68ers, gave us Nixon. And with the aid of the Trilateral Commission,
destroyed the U.S.
economy on the inside. Once the Soviet Union
collapsed, another change occurred called “globalization.”
Manufacturing industries in particular, agriculture, and countries which were
good agricultural producers or good manufacturing producers, have been stripped
of those industries, [gone] to populations where the lower 80% of the
population is illiterate.”

LaRouche: “So you have ‘colonies of
manufacturing’ in countries in Asia, Africa, South
America, where 80% of the population does not participate in the
economy. You have areas which used to be food-producing areas, which no longer
produce food. Because, what you’re having is a world dictatorship, under
the name of globalization, in which the cultures are being destroyed….”

LaRouche: “We are now in a period, where the world as a
whole, is in the process of collapsing into a new dark age, similar to, but
worse than, potentially—unless we stop it—that which happened to
Europe in the middle of the 14th Century.”

In this circumstance, Mr. LaRouche has made a number of proposals,
in the tradition of the American System of political economy, to protect the
population and get production going again: the Homeowners and Bank Protection
Act; a two-tier credit system to channel funding for especially infrastructure;
a four-power international conference to fix currency exchange rates again; and
immediately doubling of world food production.

LaRouche: “Were now at a point, where a revolutionary
movement, or the makings of it, is building up around the food issue. And
therefore, those who triumphed yesterday, are not going to continue to triumph
for long: The result is, either we win, and restore the kind of government we
require, in various nations, and among nations, or this world is going into
Hell, because the crisis won’t quite. The people will die of hunger; they
will die in increasing numbers; they will kill for food. The structure of
society will be destroyed in the fight over food which is not there. And
therefore, either we win this fight against this evil, or there won’t be
anything to fight for.”

On the June 7LaRouche
Show, the weekly internet radio program, EIR’s
Asia Desk Editor Michael Billington
interviewed Da Wei, Deputy Director of the Department
of American Studies at the China Institutes of Contemporary International
Relations (CICIR). Joining the discussion was
LaRouche Youth Movement member Liona Fan Chiang.
The program was videotaped for public access cable TV.

Host Billington began by setting the stage for the discussion, by
providing an overview of the current global political and financial breakdown
crisis, the worst in modern history. All attempts to bail out the world’s
bankrupt banking system, he said, are only increasing hyperinflation of the
sort seen back in 1923 WeimarGermany.
Hyperinflation in food and fuel has already resulted in the onset of famine on
a global scale; and social dislocation, riots, food and fuel demonstrations in
country after country. In the U.S.,
the same hedge funds responsible for the subversion of the American banking
system are also now shown to be responsible for the subversion of the process
by which we are choosing our next President.

Billington: “Lyndon LaRouche’s proposal for a
Four-Power Agreement between Russia, China, India, and the U.S.—the kind
of arrangement organized by President Franklin Roosevelt which made it possible
for us to defeat fascism in the 1930s and 40s—is today absolutely
essential, if we’re going to have the capacity to put together a new
world financial system, and to unleash the kind of economic renaissance required
to deal with the current breakdown crisis.”

Mr. Billington then touched on the May 14-16 meeting in Yekatarinburg, Russia, where the foreign ministers of Russia, China,
and India,
made a very dramatic commitment to stick together, and to commit their
countries to working together against what they perceive to be a very serious
threat, not always named as a British threat, but recognized. This group of
nations declared their unity around a great development prospectus—the
idea of great infrastructure crossing the region—as the necessary
counter-measure against the threat of war coming from the British and their
allies in the U.S.

After going through the history of CICIR,
“the biggest thinktank in China,” Da Wei
described its main task as writing policy papers and recommendations for China’s leadership, as well as doing some
contract research for private companies and organizations, both in China and
abroad.

Cross-Strait relations was the first topical issue to be discussed.

Da Wei:
“Though mainland China
and Taiwan
are under different governments rule, different administrations, they think
that they culturally, ethnically, and (maybe in the future) politically and
economically, they belong to one nation. So I think that is the very good basis
for the future negotiations, and after that, after the elections in Taiwan, we
already had some progress.”

Liona Fan Chiang
then discussed the recently-released documentary, “Firewall: In Defense
of the Nation-State,” [see The
LaRouche Connection Program No. 715], which reveals the origin of Weimar
German monetary hyperinflation, in the destruction of Germany’s
economic productive capability—the same trend we are again witnessing,
now on a world scale. The video focuses especially on the British role in
destroying Germany,
and how they connived to bring in Hjalmar Schacht and eventually Adolf Hitler
to “solve” the “problem.”

Da Wei answered
Ms. Fan Chaing’s question of how today’s
hyperinflation is affecting and being treated by the Chinese government, by
stating that indeed “the inflation problem is maybe the most important
task that the Chinese government is facing…. On the one hand is the
so-called new liberalism; on the other hand is, let the county, let the
government, the state play a more important role in the development. For
example, in the financial market, the government should play a more important
role as a stabilizer. In the food supply, the Chinese government has, since the
mid-1990s, already noticed that it could be a very severe problem for China….
The government has already taken some measures to slow down the growth of the
Consumer Price Index, to make people’s life easier.”

Da Wei:
“We are quite dependent on the import of fuel—oil and gas—but
[we are] basically self-sufficient in food…. We have done some things,
like we built the Three Gorges Dam, and we also are trying to build more
nuclear plants. We depend heavily on coal. We don’t have a silver bullet
[to solve the food supply and environmental problems] very easily. [They] are
long-time problems, I think.”

As to the urgency of a Four-Power alliance to avoid another round
of British-instigated warfare and deal with the breakdown crisis, Da Wei stated that “the biggest problem is mutual
trust, and that in recent years the high level of relations between China and Russia,
and China and India, is
getting better and better.”

On the Tibet
issue, Da Wei stated that “It’s first not
an ethnic conflict. It’s a problem, or issue, in the process of social
development, pretending to be an ethnic conflict, or its shows up as ethnic
conflicts in China….
The [1904 British] invasion created the Tibetan issue…. It’s a
problem in the [realm of] economic development…. I do think we can do
more in Tibet
to solve this problem, by pushing new affirmative actions which are suited to
the market economy, the new economic situation there.

Da Wei then
referenced a poem, which expresses the feeling of frustration among many young
Chinese abroad (called the “April Youth” in China), who believe China
is being treated unfairly in especially European and U.S. media: “When we’re
poor, you say we are Yellow Peril. When we are rich, you say we are threat of
the world. When we have a large population, you say we will use all the
resources. When we try to control the population, you say we are violating,
abusing, human rights.”

The May 12 earthquake in SichuanProvince, in which almost
100,000 Chinese died, has also, according to Da Wei
“provided us a challenge and opportunity at the same time…. All
those countries which sent their rescue teams and provided many relief
materials—we can feel this kind of help and friendship from the outside
world. This is a positive development…. We are in a huge transformation,
not only in the political and economic, but also social [arena], from a more
traditional society to amore modern one…. I think social equity is the
top priority of the current Chinese administration. After they came into power
in 2002, they began to talk about politics based on people’s – we
can translate it as “of the people, by the people, for the people,”
something like “you should build your politics, your ruling legitimacy,
on the people’s needs, the people’s demand…. The mutual trust
between the government and the society is very important in the efforts to
build a better society.”

Liona Fan Chiang
next introduced the question of “globalization,” the push for
so-called liberalization of trade, which is “pretty much freedom to loot
from anywhere you’d like.”

Agreeing with Fan Chiang’s characterization, Da Wei emphasized what is needed is a “fair process:
fair economic globalization, and that needs the cooperation, and collaboration
between the major countries.”

At the beginning of May, our nation was witnessing not simply the
drama of a long primary election campaign, but a war for the survival of
American forces, against those of the British Empire.
As of the end of June, where things go in the U.S. and in the world at large,
will still not be decided at some political convention in August, nor at the
general election in November. The strategic answers which determine the future
of this nation and the planet, will be determined by how the leadership of this
nation responds to the strategic questions before us, right now.

Both as a former Presidential candidate, a statesman, an economist,
and as the chairman and founder of the LaRouche Political Action Committee,
Lyndon LaRouche has put those questions before us, repeatedly. It has been the
organizing of his movement that has largely shaped the issues in the ongoing
national election. But not enough of the American people yet understand what is
at stake. Not enough of our leaders, or would-be leaders, understand.

On May 7, Lyndon LaRouche
delivered an address in Washington,
DC at a town meeting sponsored by
the Lyndon LaRouche Political Action Committee (L-PAC), to once again, outline
how the nation and world has gotten into the mess it is in, and, more
importantly, how we can save civilization from doom. The event was broadcast
live over the internet.

Edition No. 716 of The
LaRouche Connection featured Mr. LaRouche’s opening remarks. This
edition presents seven questions from the Discussion Session. The entire event
was moderated by Debra Freeman.

·From a woman working in one of the Presidential campaigns:
“[Polls are showing] that 90% of Democrats who voted for Obama in each of
the past primaries, have said they would vote for Clinton
in a McCain vs. Clinton
race. However, the opposite is simply not true: the majority of those who voted
for Clinton
now, may indeed vote for McCain, in a McCain vs. Obama race. What’s up
with the Democratic Party – the DNC, the House Dem Caucus, the Sen. Dem
Caucus? Even from the most limited pragmatic, pedestrian view, the simple fact
is, that Clinton
can beat McCain and Obama can not. What are they doing? Do they know what
they’re doing, or are they being played for fools?”

·From a state-wide office holder in New York:
“The New York
press is full of stories that Karl Rove has insinuated that the Republicans are
in possession of an October Surprise, to be used if Obama becomes the
Democratic nominee. But that would indicate that it would be their intention to
make McCain President, and that doesn’t seem to make sense to me.
Personally, I do think McCain is crazy, but I really don’t believe he is
a fascist. What’s your view of this?”

·From a former female Secretary of Labor: “One of the most
pressing issues we face is the price of fuel. On the food issue, clearly one
way to address this problem is to increase food production. However, the
massive increases in the price of fuel are not a result of oil shortages per
se. Clinton’s
proposal at least recognizes the problem, but we’re all aware of the fact
that it hardly solves. It. What action would you recommend? Is the proper path
one of going after OPEC and the big oil companies? Is there some legislative
initiative that should be pursued?”

·From some unidentified person: “If you were running Clinton’s campaign,
what would you tell her? How can she intensify her appeal to the lower 80% [of
income brackets]? Do you think that any of this ultimately is sufficient to
overcome the hierarchy that’s determined to keep her out of the
Presidency, and if not, then what do you think she has to add to her
appeal?”

·From a Democrat on the Senate Agricultural Committee: “Will you
be drafting something similar to the HBPA [Homeowners and Bank Protection Act],
on the food question? Regardless of whether you plan on submitting actual
legislation, what specifically would you recommend in the way of legislative
action, to immediately address the crisis?”

·From a Clinton supporter: “If Obama is a fall-guy set up by
the British Empire, [then] why are you not backing Clinton 100%? I understand
that she is not perfect, but is without doubt, the only one that has a chance
of doing right by humanity.”

·Composite question on Africa: “What is your solution to the
problem that you refer to in Africa, where the
growth of the African population is seen as a threat to the international
financiers’ control of raw materials? Do you believe that there is a
difference between the Anglo-Dutch financier oligarchy and the government of Great Britain?
Many people in Africa really don’t see
any difference between the two. Considering the food and financial problems
that Africa faces, if right now you were standing
anywhere on the African continent, what would you say to the African
people?”

At the beginning of May, our nation was witnessing not simply the
drama of a long primary election campaign, but a war for the survival of
American forces, against those of the British Empire.
As of the end of June, where things go in the U.S. and in the world at large,
will still not be decided at some political convention in August, nor at the
general election in November. The strategic answers which determine the future
of this nation and the planet, will be determined by how the leadership of this
nation responds to the strategic questions before us, right now.

Both as a former Presidential candidate, a statesman, an economist,
and as the chairman and founder of the LaRouche Political Action Committee,
Lyndon LaRouche has put those questions before us, repeatedly. It has been the
organizing of his movement that has largely shaped the issues in the ongoing
national election. But not enough of the American people yet understand what is
at stake. Not enough of our leaders, or would-be leaders, understand.

On May 7, Lyndon LaRouche
delivered an address in Washington,
DC at a town meeting sponsored by
the Lyndon LaRouche Political Action Committee (L-PAC), to once again, outline
how the nation and world has gotten into the mess it is in, and, more
importantly, how we can save civilization from doom. The event was broadcast
live over the internet.

·From a
Clinton supporter: “If Obama is a fall-guy set up by the British Empire,
[then] why are you not backing Clinton 100%? I understand that she is not
perfect, but is without doubt, the only one that has a chance of doing right by
humanity.”

·Rep. Priscilla Taylor (Florida House of
Representatives, Democrat-District 84): Two questions: “Hillary wants a
tax holiday [on the gas tax]; Obama opposes it. What do you think? What can we
do now, immediately, that will have some benefit for the population?”
“I know your Homeowners and Bank Protection Act (HBPA) has passed in many
cities and states. [Ms. Taylor introduced it into the Florida Legislature.]
Congress has refused to act on that measure, having their own bill, [and
President Bush has said he will veto the relief bill the Democrats have put
forward]. Does this give us a new opportunity for the HBPA, or are there other
more pressing questions?”

·Composite
question on Africa: “What is your solution to the problem that you refer
to in Africa, where the growth of the African
population is seen as a threat to the international financiers’ control
of raw materials? Do you believe that there is a difference between the
Anglo-Dutch financier oligarchy and the government of Great Britain?
Many people in Africa really don’t see
any difference between the two. Considering the food and financial problems
that Africa faces, if right now you were
standing anywhere on the African continent, what would you say to the African
people?”

·John Jeffries (Official with Local 400,
International Association of Machinists and Aerospace Workers):
“We’re making every effort to get the HBPA passed here in Louisville, KY.
What are the similarities of the times in 1933, to today, particularly with
regard to the housing market, and to banking in general. Debt obligations of
mortgage-backed securities I don’t think were an issue in 1933. Is our
current situation worse than 1933? If so, how?”

·Dr. Luise Light (former Director of Dietary
Guidance, USDA): “According to the UN Global Policy Forum, the world
produces enough food to feed every person alive. So why are we seeing the
greatest worldwide hunger and starvation epidemic ever recorded, with one out
of every six people in the world at immediate risk for severe malnutrition and
death by starvation. This is not only immoral, but is breeding war and
revolution in every known country where this massive hunger exists. We know two
things: when people have the capacity to grow most of their own food and live
in stable communities, they are not malnourished, they don’t starve to
death ,and barring any unexpected catastrophe like war or weather-related
disaster, they’re okay. The second thing we know, is that this global
hunger catastrophe is man-made. It was created by the WTO [World Trade
Organization] and others who have globalized monoculture and restricted farming
by rules that favor the needs of the affluent, and ignore those of the poor.
Who has decided who will live and who will die, by dictating such stupid,
arrogant, and murderous world trade policies?”

·Sen. Joey Pendleton (Minority Whip, Kentucky
State Senate, and co-sponsor of SR-90, the Kentucky HBPA): “In addition
to my service in the legislature, I’m an active farmer, and I also serve
on the faculty of the Murray State University Agricultural Program…. How
can we feed the world, with the rising cost of production, and yet at the same
time, keep food cheap for the domestic market? What’s your idea on how to
keep farmers in American farming?”

·Composite
question from members of the LaRouche Youth Movement: [Considering the fact
that even if Hillary Clinton became President, in order to do that, she would
have to make so many rotten deals and compromises with really bad people, that
she wouldn’t be a very good President anyway] “is there maybe some
other way for us to affect the general future of civilization, other than
politics? … I want to maintain a sense of optimism about the future, but
looking at the political framework, I’m having trouble doing it.”

In a webcast one year ago (July 25,
2007. See The LaRouche Connection
Program Nos. 699, 700, 701: “The End of the F.D.R.
Era,” Parts 1-3) Lyndon LaRouche
declared that the collapse of the global financial system was not “about
to occur,” but was, in fact, ongoing.

Now, a year later, he told a Washington,
DC audience on July 22, that we
are not facing a depression, but a general
breakdown crisis. The question, as always, is how to get people to act, and
do it now. The event, sponsored by the LaRouche Political Action Committee, was
webcast live over the internet in English, Spanish, Italian, German, and
Russian. The entire event was moderated by Debra
Freeman. This edition of The
LaRouche Connection features Mr. LaRouche’s opening remarks.

Mr. LaRouche emphasized: “The first thing to settle, is that
the present international monetary-financial system will die, and will never
recover. This system is finished. The only possibility that exists now, is to
create a replacement system, based on the principles of the founding of the U.S.
economic system, with the founding of the actual Constitutional government, as
defined under, particularly, Alexander Hamilton. And if you don’t
understand, and agree, with Alexander Hamilton, it’s like saying, there
is no future for you.”

Now, as last July, Mr. LaRouche called for “three specific
remedies, which are not cures to the problem,” but without which
“there’s no future for the United States and no future for the
world:”

1.Congress must pass the “Homeowners and Bank Protection
Act.” Under this Act, all State and Federally chartered banks are to be
put into bankruptcy protection, by the Federal government, with restrictions on
which of their accounts will be paid; the rest to be frozen. And, there will be
no evictions of householders because of mortgage default. They will remain in
their homes under conditions which are acceptable conditions, and will continue
to function under bankruptcy protection.

2.Under the Constitution, the United States must again treat its
money as a sovereign instrument of government. Money, or credit, which is
convertible into money, must be allowed only through action of government. No
bank is permitted to create money, only a government, by credit, by authorizing
the utterance of debt of the government, in the form of credit, which defines
that debt explicitly as applicable to certain missions, like investments, or
developments of people. Under this system, two tiers of credit must be set up,
in which the standard interest rate for regular banking—the basic
interest rate—is 4% throughout the Federal Reserve System; and 2% (with
Federal government protection), for special projects, especially infrastructure
projects.

3.The United States must propose to the governments
of Russia, China, and India,
that these four major countries agree to sponsor a committee—an alliance
of powers, including other powers—to establish a fixed-exchange rate
financial-credit system internationally, of the type President Franklin
Roosevelt intended in 1944 at Bretton
Woods, New Hampshire.
No other country can initiate such action.

We must have a Presidential candidate, in the United States, who will be credible, in saying
to the China, Russia, India, and so forth, “This is
what the Unties States is committed to do, as soon as I get to be President.
And we can start it right now.” That’s what we need right now!

Commissioned by Lyndon
LaRouche to bring the importance of the Franklin Roosevelt presidency to
today’s world, a small team of his young associates went to work. On July
30, the LaRouche Political Action Committee (L-PAC) released 1932, and began distributing 10,000
copies of the 101-min. documentary on DVD all across the nation. With L-PAC’s permission, The LaRouche Connection presents Part 1 of “1932,”
edited for Public Access.

Beginning with Abraham Lincoln’s arrival in Washington, DC
for his first inaugural address, with the Union in mortal danger, narrator Robert Beltran reminds us of
America’s long and continuing-to-this-day struggle of the American System
of Economics, “which values the creative powers of the human individual
far above any other form of material wealth, recognizing these creative powers
as the source of that material wealth, against the British Empire’s lust
for control of the so-called “fixed” resources of the
environment…which treats the power of human insight as a threat to its
power.”

Three years after the American Centennial celebration, Germany, under
Chancellor Otto Von Bismarck emerged as a national power on the world stage,
operating under an American-inspired tariff policy. The British determined
“not to lose our former leadership…passing to the Americans,”
and put into play a geo-political strategy to eliminate Bismarck
and crush Germany.
Price Edward Albert, later King Edward II, protégé of Lord Palmerston and son
of Queen Victoria, made himself dictator of
British foreign policy, and for the next 20 years, personally oversaw the
elimination of all obstacles to the creation of a “nightmare
coalition” of Russia, France, and Britain, to accomplish this goal,
leading straight to The Great War. British foreign policy for Germany in the post-war period reflected exactly
the aims of H.G. Wells: the dissolution of Germany as a
sovereign country. Crushed under the 1919 Treaty of Versailles, by 1923, the
British had finally re-conquered Germany,
and in Southwest Asia, the same policy was pursued, under the British Arab
Bureau and French foreign ministry, creating the Skyes-Picot
accord, which mandated British control of the Palestine/Trans Jordan and Iraq region, with French control of Lebanon and Syria.

In the United
States, the same banks and cartels
dismantling the German nation, positioned themselves for similar actions
against an already weakened American System. Wall Street became headquarters of
these operations, through the likes of criminals such as John Pierpont Morgan.
By 1928, John Raskob, a Morgan asset, who had built
his fortune through insider speculation, rose to prominence in the Democratic
Party. Controlling things on the Republican side of the aisle was another
Morgan agent, Thomas Lamont, who provided daily consultation to then President
Herbert Hoover. Rampant speculation led to the inevitable collapse of 1929.

Through these and other Wall St. networks, and directed on the
ground by Reichsbank President Hjalmar Schacht, millions of dollars were
injected into the Nazi Party. Finally, Germany’s President
Hindenburg was pressured in February 1933 to bring in Adolf Hitler as
Chancellor.

Back in the summer of 1932, the Democratic Party nominating
convention was confronted with selecting a candidate for the U.S. Presidency
who could deal with the economic crash which had snowballed into widespread
hunger, bankruptcy, foreclosures, and massive unemployment. Despite a clear
mandate of the American people for a Franklin Roosevelt nomination, the
Democratic National Committee, under John Raskob,
went to extraordinary lengths to stop him. Indeed, it was only on the fourth
ballot that Roosevelt finally secured the
nomination.

The fight at the Convention was not a simple internal Democratic
Party struggle, but rather a conflict over whether the Lincoln tradition of American politics, or
the British system of Empire, would prevail in the world. Franklin Roosevelt
knew this to be the issue of the Convention. He knew this, not as a recent
discovery, but something which was fundamental to his thinking throughout his
life.

[Here ends PartI. (Acts 1 & 2). Part II (Act 3), a summary
of which appears immediately below, has yet to be produced as a LaRouche
Connection program.]

1932 continues
with details of Franklin Roosevelt’s biography, going back to 1901, when
as a young man of 19 at Harvard, wrote his thesis on Alexander Hamilton,
President Washington’s choice for our first Secretary of the
Treasury—“the greatest of the cabinet offices,” as against
British agent Aaron Burr, “who saw in [the nation’s] grater
financial security the banishment of his dream of establishing a Northern Confederacy.”
Between 1921 and 1924, Roosevelt and his family turned the period his polio
illness and convalescence into a constructive period of education into all
fields, becoming serious about politics. By 1928, the signs of total economic
collapse and control of all politics by a few on Wall Street became visible to
many Americans. He ran for and was elected Governor of New York and addressed
the 1928 Democratic Party Convention. As New York Governor, he began to reverse
the ongoing economic disintegration by implementing politics of Social
Security, unemployment insurance, major state infrastructure, job creation
projects, regulation over utilities, and initial regulation of Wall Street.
This prescription set a precedent of policy standards later and drew many
protests against him from the Hoover Administration.

By 1930, the Republican Party had become the party of financial
speculation and free trade. Franklin
was seen by many as the likely Democratic Party nominee for the 1932 election.
To combat Franklin,
John Raskob moved the repeal of Prohibition into the
forefront of party politics, intending to drive a wedge between the Northern
and Southern Democrats. To combat the control by the elites, Franklin
invented his famous “fireside chats,” to educate the people about
the problems America
faced, and to muster support for his intended policy solutions.

Amidst the chaos of the convention, the Roosevelt apparatus
persisted, Roosevelt finally winning the
nomination, on the 4th ballot. Upon his subsequent victory over the
Republican incumbent Hoover,
he began to implement a New Deal for the nation. Within hours of his first day
in office, he began a comprehensive reorganization of the nation’s
economy. Chief Aid Harry Hopkins, armed with only a card table, a pot of coffee
and a telephone, hired 11 million Americans and spent $20 million in the first
three hours of the administration! With the Civilian Conservation Corps, Rural
Electrification Administration, Four Corners projects, etc, Roosevelt
launched the largest peacetime mobilization of manpower and materials the world
had ever seen. He used the Reconstruction Finance Corporation as a quasi
national bank to re-establish the credit of the nation. He built schools,
libraries, airports, post offices—all with Government issued credit. He
re-established the U.S. Currency, stabilized the price of gold, and opened a
penetrating investigation of Wall Street’s rampant speculation.—all
within the first 100 days.

The narrative then covers the infamous American Liberty League, organized
by Raskob, to propagandize against Roosevelt’s
policies, with the ultimate objective to organize a 500,000-man force to storm
the White House and overthrow Roosevelt.
Fortunately, this plan by what Roosevelt
called “these economic royalists” was stopped.

The battles of World War II are known. What is not, is the story of
the war between the American and British System, to determine the future of
civilization, which took place in discussions between the two individuals who
represented these outlooks: President Roosevelt and Prime Minister of Britain,
Winston Churchill.The narrative
presents this conflict in the form of a mini-drama, through the eyes of Roosevelt’s son Elliott, who attended many of the
meetings between his father and Churchill. [See the book As He Saw It, by Elliott Roosevelt]

Roosevelt’s
vision of the post-war agreements was the banishment of colonialism worldwide,
and the bringing of the power of technological development to all nations.
Under Roosevelt’s leadership, the U.S. created a potential for global
cooperation, threatening the end of imperialism on the planet. For the first
time since Lincoln’s
victory in the Civil War, the world was moving in the direction of defeating
the oligarchical principle, and establishing a global community of sovereign
nation-states. Under the presidency of Roosevelt’s
chosen successor, Vice President Henry Wallace, that future would have been
secured. Tragically, British operatives in the Democratic Party pressured Roosevelt to replace Wallace with Harry S Truman in the
1944 election. Truman was not committed to fighting for Roosevelt’s
principles and proved himself willing to submit to Churchill’s post-war
outlook.

It has now become our job to finish the work Franklin Roosevelt so
courageously advanced in his life!

In a webcast one year ago (July 25,
2007. See The LaRouche Connection
Program Nos. 699, 700, 701: “The End of the FDR Era,” Parts 1-3) Lyndon LaRouche declared that the
collapse of the global financial system was not “about to occur,”
but was, in fact, ongoing.

A year later, he told a Washington,
DC audience on July 22, that we
are not facing a depression, but a general
breakdown crisis. The question, as always, is how to get people to act, and
do it now. Sponsored by the LaRouche Political Action Committee, and moderated
by Debra Freeman, the event was
webcast live over the internet. Part 1 of our coverage of this event (Program
No. 720) featured Mr. LaRouche’s opening remarks. Part 2 features the
first six questions from the Discussion Session.

From the Discussion Session:

From a former cabinet member: “It would seem that we do have
to prepare for the possibility of an Obama candidacy. Our efforts to reach out
to the Obama campaign in shaping policy have been rebuffed. We are at a loss as
to how to proceed.”

From a current member of Congress: “We who backed Obama knew,
that if he became the Democratic nominee, he would have to make certain compromises,
but he’s doing things now that he is not under any pressure to do, which
are serving to completely alienate the base that has supported him from the
start, leaving them with a very deep sense of betrayal. Any insight? What do we
do?”

From a former member of Congress: “Despite Obama’s
arrogant confidence that black Americans will turn out in record numbers to
vote for him, a deep split is forming in the black community, with those of us
whose roots are in the Civil Rights movement on the one side, and those younger
black professionals, who’ve enjoyed the benefits of that movement, on the
other…. What do you recommend…to stop this from happening? Should
we just concentrate on getting the right people elected to the House and Senate?”

Unidentified: “Scores of grassroots organizations have sprung
up all over the U.S.,
whose intention it is to guarantee an open Democratic Convention. [But]
we’re not getting much in the way of guidance from the Clinton campaign, and without it, it’s
very hard to maintain a sense of optimism that we can prevail. Is there any
chance at all of Hillary [Clinton]
recapturing the Democratic nomination? If so, how? And if not, what to
do?”

From Sam (a student in Yemen): “Here in Third World
countries, people are not fighting to defend a standard of living; we are
fighting to provide ourselves with the most basic necessities for surviving,
and we’re starving, and we are suffering to death from this economic
collapse…. What should we do? Is there any hope for us at all? Any hope
for use from the U.S.?”

Rep. Yusef
Abdul-Salaam (member of the Alabama House of Representatives, Selma):
“The nation is in the midst of a major economic crisis, and yet our
leaders – Mr. Paulson, Mr. Bernanke, and others—deny this and
insist “the fundamentals are sound, everything’s fine; we can
handle the current crisis, because the economy is fundamentally strong.”
Why are these men in denial? Are they really? Why won’t they grasp the
solution that is at hand?”

On September 17, twelve days before his scheduled international
webcast, Lyndon LaRouche videotaped some urgent remarks on the global
financial/economic crisis. This edition of The
LaRouche Connection features his opening statement, followed by a dialogue
with members of the LaRouche Youth Movement.

LaRouche: [Between now and Oct. 1] the U.S. economy may have entirely
disintegrated. That’s actually a possibility, the way the government has
been behaving recently, in dealing with these bailout situations.

We’re now in a hyperinflationary process, caused largely by
the measures taken under this government. Back on the 25th of July
of last year, I warned that this was about to break out, and I expected it to
break out by the first of August. It broke out by the 28th of July,
instead. So I’m wrong sometimes, hmm?

We’re now in an aggravated mess. The recent series of
bailouts should never have occurred. These entities should have been put into
bankruptcy reorganization in a normal way. Many of the assets that are listed,
as the loss assets, were dubious. Some of this may have been criminal, and
should have been investigated for potential criminal action against those
involved.

The essential thing is to save the United States. As I said last year,
this involves first of all the Homeowners and Bank Protection act. We must not
shut down any bank, which is an essential institution of credit within the
chartered banking system, whether Federal or state. Even if they are bankrupt,
their doors must be kept open, their assets and communities served must
continue to function.

I also proposed a minimum 4% basic interest rate—that was not
done. We’re now operating at 2%. Some idiots are trying to reduce it to
1.5%, which is hyperinflationary nonsense.

I also proposed that we approach Russia,
China, and India, as prospective partners of the United States,
in initiating a new international monetary-financial system, based on the
precedent of Franklin Roosevelt’s Bretton Woods system. We would again
create a credit system, which is only possible under the U.S. Constitution,
because we are not a monetary economy; we are a credit system. This country
cannot print money, except by authorization of the Congress, and by the
Executive Branch, with the authorization of the Congress. We have an
approximation of that under the Federal Reserve System. No other country in the
world has this kind of system.

Therefore, we represent, for Russia,
China, and India—which are directly, or
indirectly,major trading partners of
the United States—something
unique for the world, in reorganizing a new monetary-financial architecture for
the whole planet. We together, if these four powers agree, with other countries
joining in, can create a new international credit system, and begin to rebuild
the world which is shattered now.

For years, Lyndon LaRouche
has warned us that the U.S.
economy was heading into a breakdown crisis. He has repeatedly indicated
measures, which, if taken, would have worked to avoid it. And now, with
Congress’s betrayal to Wall Street, Mr. LaRouche has, once again,
repeated his warnings of a New Dark Age. This edition of The LaRouche Connection features Mr. LaRouche’s opening
remarks to an event sponsored by the LaRouche Political Action Committee in Washington, DC
on Oct. 1. Debra Freeman moderated
the event.

LaRouche: “There’s been nothing like the crisis that
faces us today, since a comparable crisis in Europe
during the medieval period, the New Dark Ages: we are on the verge of global
hyperinflation and complete collapse of the entire planet into a New Dark
Age.”“We would not be in
the crisis we’re in today, if people like Sen. Chris Dodd and Rep. Barney
Frank, had not prevented the actions which I had specified.” “The
bailout method, itself, is [now] the driving force of global
hyperinflation.”

The problem with our economy, is that “from 1967-68 until today,
measured in physical productive output—not money—the United States
has been declining in economic power, physically per capita, per square
kilometer, over every year, under every Presidency. There has been prosperity
for some, in terms of money, but there was no improvement in our
infrastructure; we’ve lost industries.”

What are the remedies?

1.Keep
homeowners in their houses. No evictions. Make arrangements to manage the
downsizing of the mortgage debt, most of which is fraudulent to begin with.

2.Keep
essential banking functions going. Restore Glass-Steagall.
Set 4% as the basic lending rate, except for government projects which are in
the national interest, certified by the Congress, which would have a lower
rate.

3.Approach Russia, China,
and India,
to put the entire world into bankruptcy reorganization and establish a new, Rooseveltian, Bretton Woods system. This will be a credit,
not a monetary, system.

“We need a mobilization of the productive power of the United
States, which is largely machine-too-design and related things, to build our
infrastructure, to re-build our manufacturing,” so we can build our way
out of this collapse: transportation systems, especially magnetically-levitated
rail; water management systems, to replenish our dwindling fossil reserves, and
protect our cities; electrical power generation and distribution systems,
primarily nuclear. And we will use this new productivity to re-build the world.

Mr. LaRouche closed on “the danger that somebody in the White
House is going to think about calling the troops out to suppress the
population, if they don’t like the vote they think they’re going to
get from the second vote in the House of Representatives. People have to
understand that. You’ve got fascism in this country, right now. And the
center of fascism is right in the White House.” Only if the American
people make it clear, that they will not tolerate this, will Congress be made
to do what is right.

For years, Lyndon LaRouche
has warned us that the U.S.
economy was heading into a breakdown crisis. He has repeatedly indicated
measures, which, if taken, would have worked to avoid it. And now, with
Congress’s betrayal to Wall Street, Mr. LaRouche has, once again,
repeated his warnings of a New Dark Age. Program No. 724 featured all but 10
minutes of Mr. LaRouche’s opening remarks to an event sponsored by the
LaRouche Political Action Committee in Washington,
DC on Oct. 1. This edition
features the last 10 minutes, plus six questions from the discussion session. Debra Freeman moderated the event.

From the Discussion Session:

Questioner #1: “People like former Treasury Secretary Robert
Rubin, Larry Summers, and others among us, have been engaged in international
discussions for a new financial architecture, precisely along the lines of what
you have proposed, [but] they all insist that this bailout must come first, in
order to give leaders time to act. Your comments?”

Questioner #2: “I know first hand you’re right, that
the Russians favor talks that would include the U.S., among others, to begin to
craft a new financial architecture. But this current administration is no way
inclined to do so, and has rejected the proposal when it was put to them, both
by the Russians, and also by people inside the U.S. Even with some institutional
support here in America,
I’m not sure I understand how this could work without the agreement of
the U.S. Presidency. Go through that for us.”

From a Democrat member of the U.S. Senate: “In trying to
decide how I would vote tonight [on the stimulus package], I asked my friend
[former World Bank economist] Joe Stiglitz what he
recommended. He said there were a variety of reasons why the [Treasury
Secretary Henry] Paulson plan would not and could not work, but recommended I
vote yes, as essentially a very expensive way to buy the time needed for us to
reorganize and re-regulate. Clearly you disagree. If the measure passes, is it
true that we pass a point of no return?”

From another Democrat member of the U.S. Senate: “When FDR
addressed the banking crisis in the 1930s, he made no bones about the fact, that
building our way out of the Great Depression would carry with it hardship for
the population. I’m inclined to vote against the bailout, but I
don’t want to lie to my constituents and tell them I have a painless
solution, especially when we do not. What is the pain threshold of your
proposal?”

From 17 freshmen members of the U.S. House of Representatives:
“Taking direction from you, we’ve studied the period from 1932 on,
and it does seem that FDR’s approach would work [today]. Why is there so
much opposition to an FDR solution?”

From a staffer to a Democrat member of the House of
Representatives: Three questions: How would a two-tiered credit system prevent
runs on banks? What is the difference between bank liabilities and bank
credits, or assets? How would fixing exchange rates prevent speculative attacks
against national currencies?

With Congress’s betrayal to Wall Street, Mr. LaRouche has,
once again, repeated his warnings of a descent into the abyss of New Dark Age.
Program 724 featured all but 10 minutes of Mr. LaRouche’s opening remarks
to an event sponsored by the LaRouche Political Action Committee in Washington, DC
Oct. 1. Program 725 featured the last 10 minutes, plus six questions from the
discussion session. We now complete the Discussion Session. Debra Freeman moderates.

·From the
editor-in-chief of a major policy journal in Washington, formerly a columnist
for Business Week: How does the
Federal Reserve manage to pump trillions of dollars into Wall Street to prop up
the faltering investment banks, to the detriment of the taxpayer? How is what
the Federal Reserve Bank doing, by lending money to banks through repurchase
agreements, credit auctions, or other methods, different from what Treasury
Secretary Paulson is telling the public what he is doing?

·From a
political consultant and pollster: “A good number of House members voted
‘no’ on Monday because they feared what their constituents would do
to them if they didn’t. Couldn’t this lynch mob environment also be
dangerous?”

·From someone
in the audience: “When do we take to the streets?”

·From a black
State Senator: “Watching the way that the government is responding to the
current crisis, I’m beginning to wonder if black people shouldn’t
begin to worry about attempted genocide.”

·From a PRD Congressman in Mexico: “How did you manage
to foresee this crisis back in the 1970s?”

·From another PRD Congressman in Mexico:“In Mexico,
people are saying what’s happening now in the U.S.
is an American equivalent of the massive government bailout of Mexico’s
bankrupt banks in the 1990s. Why do you say that that’s not the case, and
what are the implications?”

·From an Argentina
official: “In addition to your proposals for reforming the international
financial system, what measures should governments adopt regarding their own
central bank reserves?”

·Composite
question from former Hillary Clinton campaign activists: “Where are the
real leaders of our Party? Why are they not speaking out? Surely, somebody
besides you has some idea of what to do.”

·From a
Democratic strategist: Please comment again on your statement after the
Democratic and Republican Conventions that the candidates of the moment were
not necessarily the candidate’s we’d have when we went to the polls
in November.

·Composite
question from members of the LaRouche Youth Movement: “Given the disaster
that the two leading candidates represent, how do we make policy through the
broader institution of the Presidency.”

On Nov. 1, 2008 Lyndon
LaRouche issued what he called the “November 11 Resolution,” in
which he presented the indispensable measures to be taken in the face of the
now hopelessly bankrupt world monetary system. He issued this Resolution as a
discussion document for a private meeting to be held on that date, in Washington, with a satellite meeting in New York City, and identified the period
between Nov. 11-19, as decisive for forcing a change in policy, at least among
a leading group representing the institution of the U.S. Presidency. During
that 9-day period, in addition to the Nov. 11 meeting, Mr. LaRouche gave an
international webcast on Nov. 18, and a second private meeting on Nov. 19. During
this brief, but crucial time, Lyndon LaRouche shook the world, as can be seen,
in part, by the participation of members of President-elect Obama’s
transition team in the discussion following the webcast, and by the questions
and comments which poured in from across the globe.

Featured in this edition of The
LaRouche Connection, are Mr. LaRouche’s opening remarks to the
international webcast event in Washington,
DC, Nov. 18, sponsored by the
LaRouche Political Action Committee. The entire event, including a 2-hour
discussion, was moderated by Harley
Schlanger.

LaRouche: “What we’re involved in today, is a general
breakdown crisis of the world financial-monetary system. There is no possible
rescue of this system, as such. If you try to rescue it, you will lose the
planet. You have to choose: Replace the system, or get a new planet. I think
any sane person would say, ‘Keep the planet.’”

With the current system bogged down in more than a quadrillion dollars of speculative
currency—more wealth than the world contains—there is not enough
money to cover the demands of this currency. We’ve gotten to the point
where we’ve got to sacrifice the currency claims or sacrifice the real,
physical economy.

The United
States must now, rapidly, re-assert sovereignty
over its money. Under our Constitution, legal tender, can only be uttered with
a vote by the U.S. Congress on behalf of action by the U.S. Presidency.
Returning to this unique American Constitutional System, we can create
what’s called a “credit-based dollar,” as opposed to a
“monetary dollar.”In Europe, on the other hand, the monetary systems are not
controlled by the governments, but by central banking systems, which negotiate
with governments. Governments have no essential control, as issuing
authorities, over debt and credit outstanding. And this is how artificial money
was created: by people making a capital promise to go into debt, to get a
greater amount of money uttered in their behalf, through such means as
derivatives, now in the order of quadrillions of dollars, far above anything
that could ever be paid. That is why we are never going to pay those debts!

Mr. LaRouche then takes his world-wide audience (listening in via
the world-wide web), through what is required to be done at this point: put the
whole shebang through bankruptcy reorganization. The U.S.
needs to bring Russia, China, and India (to start with) to the table,
to enter into an agreement on a new credit-based monetary system, and cancel
most of the financial obligations of the current bankrupt system. Use trillions
of newly issued credit for especially giant infrastructure projects worldwide,
finally finishing the job President Franklin Roosevelt started: ending British
colonialism. “Do we care what happens to our people, what happens to the
country in the coming period, what happens to the world? Are we willing to kick
against the pricks?”

On Nov. 1, 2008 Lyndon
LaRouche issued what he called the “November 11 Resolution,” in
which he presented the indispensable measures to be taken in the face of the
now hopelessly bankrupt world monetary system. He issued this Resolution as a
discussion document for a private meeting to be held on that date, in Washington, with a satellite meeting in New York City, and identified the period
between Nov. 11-19, as decisive for forcing a change in policy, at least among
a leading group representing the institution of the U.S. Presidency. During
that 9-day period, in addition to the Nov. 11 meeting, Mr. LaRouche gave an
international webcast on Nov. 18, and a second private meeting on Nov. 19.

During this brief, but crucial time, Lyndon LaRouche shook the
world, as can be seen, in part, by the participation of members of
President-elect Obama’s transition team in the discussion following the
webcast, and by the questions and comments which poured in from across the
globe.

Featured in this edition of The
LaRouche Connection, is the conclusion of Mr. LaRouche’s opening
remarks to the international webcast event in Washington, DC,
Nov. 18, sponsored by the LaRouche Political Action Committee, plus six questions
from the discussion session. The entire event was moderated by Harley Schlanger.

From the Discussion Session:

·From someone
at a well-known Washington, DC policy journal: Given that nothing positive was
going to come out of the G20 meeting, and the follow-up meeting is now
scheduled for way out in April, 2009, could the initiative for a four-power
agreement come from somewhere other than the U.S., such as Russia?

·From someone
with the Obama transition team: Please address both the bankruptcy vs. bailout
issue; and also indicate what you see is the viability of the American auto
industry.

·From another
person with the Obama transition team: “The first 100 days of
Obama’s Presidency: What would your order of battle be?”

·From an old
friend from Beijing, China: Under a New Bretton Woods
system, what do you think about a global currency arrangement? Should it still
be the U.S. dollar, or a basket of currencies? Or should we create a new
currency?

·From Manuel Frias,
a prominent engineer in Mexico:
On whether or not to have a new currency. If yes, should the new currency
arrangement be linked to gold, or to a basket of currencies?

·From a group
of state legislators, who had introduced the Homeowners and Bank Protection Act
(HBPA) in their state legislatures: State Sen. Constance Johnson (Oklahoma City, OK); State Sen. Joey Pendelton
(Hopkinsville, KY); State Rep. JameelaNashid (St. Louis, MO): What should we do in terms of
the HBPA, considering it has been blocked by Speaker of the House Nancy Pelosi;
what remedies are there for state governments, where you have growing
unemployment, and huge deficits?

On Nov. 1, 2008 Lyndon
LaRouche issued what he called the “November 11 Resolution” for
a private meeting to take place on that date, in which he presented the
indispensable measures to be taken in the face of the now hopelessly bankrupt
world monetary system. He identified the period between Nov. 11-19, as decisive
for forcing a change in policy, at least among a leading group representing the
institution of the U.S. Presidency. During that 9-day period, in addition to
the Nov. 11 meeting, Mr. LaRouche gave an international webcast on Nov. 18, and
a second private meeting on Nov. 19.

Featured in this edition of The
LaRouche Connection, is the conclusion of the discussion session of the
international webcast event in Washington,
DC, Nov. 18, sponsored by the
LaRouche Political Action Committee. The entire event was moderated by Harley Schlanger.

From the Discussion Session:

·From a group
of state legislators, who had introduced the Homeowners and Bank Protection Act
(HBPA) in their state legislatures: State Sen. Constance Johnson (Oklahoma City, OK); State Sen. Joey Pendelton
(Hopkinsville, KY); State Rep. JameelaNashid (St. Louis, MO): What should we do in terms of
the HBPA, considering it has been blocked by Speaker of the House Nancy Pelosi;
what remedies are there for state governments, where you have growing
unemployment, and huge deficits?

·From someone
in New York City:
Please assess the risks to prominent figures other than President-elect Obama.

·From the Italian
Senate: Considering the fact of Mr. Obama’s election not being a solution
in itself, isn’t the best approach to try to influence him, so that it
will be possible to adopt the New Bretton Woods system?

·From a
Chinese scholar: “You say Chinese workers are underpaid, and that the
Chinese government has underpaid them to compete in the global labor market for
cheaper production costs. But, raising labor costs has already made many
companies bankrupt, so how do you take care of the unemployment issues of the
Chinese population?”

·From an
economist and a banker from the U.S. Southwest: “Is it still your view
that this bailout package, the pumping of money into the financial system, that
we’re still on the verge of a hyperinflationary explosion?”

·FerideGillesberg (Denmark): “How much power does Europe have in [your proposal for a Four Power
Agreement], and what should the Europeans do? What is the relationship between
the American system and the European parliamentary system?”

·From a young
Classical artist in the heart of Europe:
“Apart from the study of nature and her principles, what advice could you
give to young Classical artists in a time of post-modernism? Once we have
perfected our skills, where are we to turn? Are there people in the world today
willing to support us, and willing to listen? How do we recognize those who are
truly noble from those who are crooks?”